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TaxTMI 
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TaxTMI 
2024 (8) TMI 62
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.... mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 1. FACTS AND CONTENTION - AS PER THE APPLICANT FACTS: 1.1 The applicant Lokmat Media Pvt Ltd. having GSTN 27AAACL1888J1Z6, is publisher of Maharashtra's leading daily newspaper in Marathi, Hindi, and English languages. We provide advertisement services in print media to a diverse range of customers, including the Central Government, State Government, Local Bodies, and the private sector across Maharashtra. 1.2 Further we have two types of revenue one is Sales of Newspaper and others is selling of Space for Advertisement in Print Media both are interdepended on each other. The print media is newspaper on which advertisement in printed which is charged to the Customer i.e. PCMC or PMC and sales of newspaper is charged to reader of the newspaper. The cost of material is same is both the revenue transactions i.e. selling of space for advertisement in print media and Sales of newspaper. 1.3 PCMC or PMC, gives us the PO for publishing the Advertisement in newspapers. The Value of ....
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....ion (PCMC), which are local authorities. However, the material component (newspaper) forms a major part of the value of supply, which involves various raw materials used for such supply. Hence, the said notification is not applicable to the sale of space for advertisement in print media, as we are not engaged in providing pure services but in supplying both goods and services. b. As per the definition of "pure services", these services do not involve the supply of any goods. In our case, we are engaged in the supply of both goods and services both i.e. the Material used in printing of advertisement and sate of space for advertisement. Therefore, we do not fall under the definition of pure services, making entry 3 above inapplicable, and no exemption is allowed. c. In the context of "sate of space for advertisement in print media," it includes the sale of space in print media, which forms a material component of this supply. The material in the form of newspapers is also supplied for the unit space booked by the client. Hence, it cannot be considered as a pure service as there is both supply of goods and services as well. d. Also, providing services in relation to sate of adverti....
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....ons stated in the Entry No. 3 of the exemption Notification. The submissions are reproduced at dealt wherever applicable for decision. 4. HEARING Preliminary hearing in the matter was held on 12.06.2024 Mr. Umesh Sharma, C.A. appeared, and requested for admission of the application. Jurisdictional Officer Mr. Yogesh Netankar, Deputy Commissioner of State Tax, AUR-VAT-E-005 Also appeared. The application was admitted and called for final hearing on 26.06.2024. Mr. Umesh Sharma, C.A., Authorized Representative, appeared made oral and written submissions Mr. Yogesh Netankar, Deputy Commissioner of State Tax, AUR-VAT-E-005 Also appeared. We heard both the sides. 5. Findings of fact, observations, provisions of law and decisions on various issues. 5.1) Uncontroverted material facts necessary for decision are as under: - 5.1.1 The applicant M/s. Lokmat Media Private Limited, is a leading Newspaper house in Maharashtra. It is providing service of selling of space in newspaper and other print media, having SAC Code 9986. 5.1.2 Applicant has supplied these services to Pune Municipal Corporation (hereinafter referred to as PMC). The advertisement issued dated 18-08-2017 vide Advertise....
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....erritory or local authority or a Governmental authority or a Government Entry by way of any activity in relation to any function entrusted to a panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243 W of constitution. Nil Nil 3A Chapter 99 Composite supply of gods and services in which the value of supply of goods constitutes not more than 25 % of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a panchayat under article 243G of the Constitution or in relation to nay function entrusted to a Municipality under article 243 W of the Constitution. Nil Nil c. Function entrusted to the panchayat under article 243G in the Eleventh Schedule - as applicable to this application are under: - 17. Education, including primary and secondary schools. 23. Health and sanitation, including hospital, Primary health centers and dispensaries. [Emphasis supplied) d. Function entrusted to the municipalities under articl....
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....n the analysis and study of above facts, it is submitted that- a) Selling of space for advertisement is pure services supplied to Municipality. However, this service is not in relation to the functions entrusted to Municipality by Article 243W. 5.4.3 Findings, discussion & decision on the issue: In supply of space for advertisement in print media, only the rights to publish advertisement are available to the recipient in specified publication, in which such advertisement is published. For printing of newspaper or printed material, Ink and papers are used and the property in such ink and papers get transferred in form of newspaper or print media, to customers who purchase or receive such of newspaper or print media. No property in goods in form of newspaper or print media, is transferred to the recipient of service of supply of selling space in print media. The recipient of such supply get only space in the newspaper, where content of its advertisement is printed. Therefore, it is decided that the supply of selling space in print media is supply of pure service as envisaged in Entry No. 3 of the Exemption Notification. 5.5) Issue No.2: - Whether supply of selling space for adve....
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....vertisement are placed for recruitment of "Medical Officer and Specialist Doctors in Hospital run by PMC. In case of PCMT, the advertisement is for recruitment of various Classes of Professors from Specialist Doctors from Medical Profession for its 'Yashwantrao Chavan Smrurti Hospital Establishment. 5.7.2 Recruitment rules of the respective PMC and PCMC manded that Recruitment of officials and staff (employee) of the corporation shall be done as per the Recruitment rules frame by those corporation and publication of advertisement for such post is mandatory. Both the Corporations have their own Recruitment Rules. 5.7.3 Pune Municipal Corporation Recruitment (Recruitment and Cadres of Services) Rules, 2014 came in force on 26-08-2014. Rule 2-Classification of Services Sub-rule 4-Medical services. For the appointment of a graduate in Medical Science from any recognized University, Post Graduate Degree holder / Diploma holder also from Medical Council of India, Ayush and similar Ayurvedic Council, Unani, Homoeopathic Council Registration shall prescribe the minimum educational qualification, such posts shall be termed "Medical Cadre" and the service of such posts shall be ter....
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....rtisement in Newspaper and the functions stated in Article 243G and 243W. Thirdly, the applicant submitted that these are not pure services. Lastly, he relied on order of Advance Ruling Authority, Uttarakhand in case of Harmilap Media Pvt. Ltd. (Advance Ruling No. 03/2019-20 Uttarakhand. Pointwise submission is as under, b. Also, providing services in relation to sate of advertisement in print media is not covered under the scope of any entry being entrusted to any Municipality under Article 243W of the Constitution of India, therefore the said pure services of the applicant cannot be said to be an activity in relation to this function of the PMC and PCMC. c. Also, selling of space for advertisement is not an essential service for the activity in relation to the function entrusted to Municipality under article 243W. d. The definition of Relation as per the Cambridge Dictionary is the connection or similarity between two things. In our case there is no connection in relation to service provided and the functions entrusted under the said article. e. submission to accept the ruling of ARA in Harmilap is also as under, Para C.3 On perusal of record we find that applicant argu....
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....tegra. In Collector of Central Excise & Ors. Vs. Solaris Chemtech Ltd. & Ors. (2007) 7 SCC 347 : 2007 (214) E.L.T. 481 (S.C.), this Court while examining the scope and purport of the expression "in or in relation to the manufacture of the final products" observed that these words have been used to widen and expand the scope, meaning and content of the expression "inputs" so as to attract goods which do not enter into finished goods. Speaking for the Bench, S.H. Kapadia, J. (as his Lordship then was) held as follows: 11. Lastly, we may point out that in order to appreciate the arguments advanced on behalf of the Department one needs to interpret the expression "in or in relation to the manufacture of final products". The expression "in the manufacture of goods" indicates the use of the input in the manufacture of the final product. The said expression normally covers the entire process of converting raw materials into finished goods such as caustic soda, cement, etc. However, the matter does not end with the said expression. The expression also covers inputs "used in relation to the manufacture of final products". It is interesting to note that the said expression, namely, "in rel....
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....of production of goods only. The expression "in the manufacture" takes in within its compass, all processes which are directly related to the actual production. Goods intended as equipment for use in the manufacture of goods for sale are expressly made admissible for specification. Drawing and photographic materials falling within the description of goods intended for use as "equipment" in the process of designing which is directly related to the actual production of goods and without which commercial production would be inexpedient must be regarded as goods intended for use "in the manufacture of goods". (Emphasis supplied) c. Hon'ble Supreme court in case of M/s. Navin Chemical Mf. And Trading Compony versus Collector of Customs decided on 15 September 1993, in para 7 has held as under, Para7- "7. The controversy, therefore, relates to the meaning to be given to the expression 'determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment'......... "The Phrase 'relation to' is, ordinarily, of wide import but, in the context of its use in the said expression in Section 129-C, it must b....
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....s Circular no 199/09/2016-Service tax, extract is as under, Para 2.2.2 In the period 11-7-2014 onwards 25 (a) "Services provided to Government, a local authority or a governmental authority by way of water supply, public health, sanitation conservancy, solid waste management or slum improvement and up-gradation", (emphasis supplied) 3. Thus, it follows that, among others, exemption is available to the following services provided to the Government, a local authority or a governmental authority, by way of- (a) construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of pipeline, conduit or plant for (i) water supply (ii) water treatment, and (b) water supply 4. The phrase "water supply" is a general phrase. Basically it will involve providing users, access to a source of water. The source may be natural or artificial like tanks, wells, tube wells etc. Providing users access to such a source will involve construction of the source (if artificial) and the transmission of water to the user. It will involve activities like drilling, laying of pipes, valves, gauges etc., fitting of motors, testing etc, so as to ....