AI Drafter 
TaxTMI 
TaxTMI 
2024 (6) TMI 119
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....ter; • that the department is in charge of all activities pertaining to planning, construction and maintenance of all categories of roads and all Government owned buildings in the state of Gujarat: • that the Government owned buildings comprises Government offices. Hospitals. Educational Institutions and buildings pertaining to all departments of the state of Gujarat: • R&B department before awarding a contract through tendering process, undertakes detailed analysis of project like field survey, collection of various data related to construction activity, feasibility report, cost estimates, preparation of plans & drawings, etc.; that preparation of tender documents require technical knowledge; • that the above services are also obtained through consultants by R&B department through tendering process; • that the applicant provides such services to R&B department; that the nature of the work awarded to the applicant, in terms of the tender is "preparing & providing plans and estimate & DTP for the building work." 5. The applicant has further contended as follows: • that the consultancy services of prepar....
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....d 28.6.2017. and. thus be eligible for exemption from levy of CGST and SGST respectively ? 7. Personal hearing was granted on 27.2.2024 and 24.4.2024 wherein Shri Dinesh Gatani, CA, Shri Devendra K Patel and Shri Pravesh Vijay, CA appeared on behalf of the applicant. On being asked it was informed that TDS is being deducted by the State Government. The authorized representative reiterated the submission and further also relied on the additional submission provided during the course of personal hearing on 24.4.2024. 8. In the additional submission provided during the course of personal hearing held on 24.4.2024. the applicant further stated as follows: • that in the PH held on 27.2.2024. an emphasis was put on the question as to how the service provided to the State Government have been utilized by the Municipality or Panchayat; • that R&B Department is a part of State Government; that the State Government has entrusted functions of planning, construction & maintenance of all categories of road/Government owned buildings to the said department; • that the phrase 'activity in relation to any function' used in the notification, ibid, is to ....
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....athi Metro Rail Corporation Ltd. Order No. AAR/AP/7(GST)/2018 dated 20.07.2018. • Padmavati Hospitalities & Facilities Management Service Order No. 31/ARA/2021 dated 10.08.2021. Discussion and findings 9. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 10. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made during the course of personal hearing. We have also considered the issue involved, the relevant facts & the applicant's submission/interpretation of law in respect of question on which the advance ruling is sought. 11. Before adverting to the submissions made by the applicant, we would like to reproduce the relevant provisions/circular for ease of reference: * Constitution of India * 243G. Powers, authority and responsibilities of Panchayats Subject to the provisions of this Constitutio....
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....stitution, the Legislature of a State may. by law, endow- (a) the Municipalities with such powers and authority as may-be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may he specified therein, with respect to- (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule; (b) the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule. * Twelfth Schedule (Article 243W) 1. Urban planning including town planning. 2. Planning of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. ....
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....a Municipality under article 243W of the Constitution Nil Nil * Circular No. 51/25/2018-GST dated 31.07.2018 I am directed to invite your attention to the Circular No. 210/2/2018-Service Tax, dated 30th May, 2018. The said Circular has been issued in the context of service tax exemption contained in notification No. 25/2012-Service Tax dated 20.06.2012 at Sl. No. 2 and 25(a). The Circular states, inter alia, that the service of transportation in ambulance provided by State Governments and private service providers (PSPs) to patients are exempt under notification No. 25/2012-Service Tax dated 20.06.2012 and that ambulance service provided by PSPs to State Governments under National Health Mission is a service provided to Government by way of public health and hence exempted under notification No. 25/2012-Service Tax dated 20.06.2012. 2. The service tax exemption at Sl. No. 2 of notification No. 25/2012 dated 20.06.2012 has been carried forward under GST in the identical form vide Sl. No. 74 of notification No. 12/2017-CT (R) dated 28.06.2017. The service tax exemption at serial No. 25(a) of notificati....
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.... under Article 243W of the Constitution read with Twelfth schedule to the Constitution. Thus ambulance services are an activity in relation to the functions entrusted to Panchayats and Municipalities under Articles 243G and 243W of the Constitution. 4. In view of the above, it is clarified that the clarification contained in the Circular No. 210/2/2018-Service Tax dated 30th May, 2018 with regard to the services provided by Government and PSPs by way of transportation of patients in an ambulance is applicable for the purpose of GST also, as the said services are specifically exempt under notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 vide Sl. No. 74. 5. As regards the service provided by PSPs to the State Governments by way of transportation of patients on behalf of the State Governments against consideration in the form of fee or otherwise charged from the State Government, it is clarified that the same would be exempt under- a. Sl. No. 3 of notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 if it is a pure service and not a comp....
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....s without involving any supply of goods would be treated as supply of 'pure services'. For example supply of manpower for cleanliness of roads, public places, architect services, consulting engineer services, advisory services, and like services provided by business entities not involving any supply of goods would be treated as supply of pure services. On the other hand, let us take the example of a governmental authority awarding the work of maintenance of street lights in a Municipal area to an agency which involves apart from maintenance, replacement of defunct lights and other spares. In this case, the scope of the service involves maintenance work and supply of goods, which falls under the works contract services. The exemption is provided to services involves only supply of services and not for works contract services. [emphasis supplied] Since, the applicant is engaged in preparing and providing plans and estimates and DTP [draft tender plan], we find that the second claim of the applicant of the service having been rendered being a 'pure service' appears to be correct. 16. Moving on to the third claim, that the activity is in relation to function entrusted to....
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....become redundant. In this connection, we find that the Hon'ble SC in the case of Doypack Systems Pvt. Ltd. [AIR 1988 SC 782] clarified the meaning of the expression "in relation to" as follows: "In this connection reference may be made to 76 Corpus Juris Secundum at pages 620 and 521 where it is stated that the term 'relate" is also defined as meaning to ring into association or connection with. It has been clearly mentioned that "relating to" has been held to be equivalent to or synonymous with as to "concerning with" and "pertaining to". Similarly, the Hon'ble SC in the case of Madhav Rao Jivaji Rao Scindia [AIR 1971 SC 530] observed that the expression "relating to" means to bring into relation or establish a relation. It was further clarified that there should be a direct and immediate link with a covenant and that there cannot be any independent existence outside such covenant. 20. A counter argument would be that if the averment of applicant, if accepted then would lead to a situation wherein all the buildings constructed by the State Government, being an activity in relation to the function entrusted to a Panchayat or Municipality, would merit exemption under Sr. No. 3 of....
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.... in Sun Export case (supra) stands overruled. Following the ratio of the judgement delivered by the Hon'ble Supreme Court, we fee! that the blanket exemption sought by the applicant in respect of all the buildings constructed for the State government under the aforementioned notification, is not legally tenable. 24. The applicant has relied upon a circular and a plethora of rulings. As far as the reliance on various rulings are concerned, we find that [a] the issue involved is different and [b] even otherwise, in terms of section 103 of the CGST Act, 2017, the advance ruling pronounced by the authority is binding only on the applicant who sought the ruling and on the concerned officer of the jurisdictional officer in respect of the applicant. As far as the reliance on the circular no. 51/25/2018-GST dated 31.7.2018, is concerned, we find that the clarification holding that service provided by PSPs [private service providers] to State Government by way of transportation of patients [ambulance services] against consideration in the form of fee was exempt was on the ground that functions of 'health and sanitation' is entrusted to Panchayat under article 243G read with XIth sched....