AI Drafter 
TaxTMI 
TaxTMI 
2024 (8) TMI 377
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....a mission of Government of India which is performed & invoiced after 01.01.2022 but which is allotted before 01.01.2022? 3. What is the rate of tax in respect of work allotted by Maharashtra Jeevan Pradhikaran ('MJP') as a part of Jal Jeevan Mission which is a mission of Government of India allotted, performed & invoiced after 01.01.2022)? 4. Who is the service receiver within the meaning of Sec. 2 (93) of CGST/MGST Act in respect of amounts received as grants by MIP which are paid to the applicant on services provided before 01.01.2022? 5. Who is the service receiver within the meaning of Sec. 2 (93) of CGST/MGST Act in respect of amounts received as grants by MJP which are paid to the applicant on services provided after 01.01.2022? 6. Whether appointment of MJP as an agency to implement water supply schemes amounts to delegation of sovereign function enumerated in Sch. XI & XII within the framework of Constitution of India so as to hold that MJP has performed the function entrusted under Article 243G & 243W of the Constitution of India? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST the s....
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....rtue of which all water by supply / drainage /sanitation/storm water schemes are implemented through the said authority. The said authority is wholly controlled by the Govt. & receives funds from consolidated funds as pet budget allocations from the respective Government for execution of any new water supply/sanitation scheme. Please see page no 20 of the paper book that shows that the amounts received by the applicant are out of budget allocations. 1.6 By virtue of amendment dated 01.01.2022 referred to in para 4 above, there is a perception in trade that the activity of the applicant is no longer exempted but is chargeable to full rate of tax i.e., 18%. However, there is no uniformity in understanding the exact legal position of tax exigibility on the applicant's activity, for some of the Zilla Parishad's, some State Governments add GST payable @ 18% to the invoice payable in respect of pure service activity performed, by tax persons identically situated, to that performed, by the applicant. Therefore, this present application is preferred in order to officially clarify the rate of tax applicable to the activity performed by the applicant viz. "pure services in the nature of p....
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....thorities established by the State Government under a legislation or government order are provided to a "Government Authority" within the meaning of Notification 25/2012. b. Karad nagar parishad versus commissioner of C. Ex. & ST, Kolhapur (20 GSTL 288) Wherein it was held that regulatory fees charged by the Municipal Corporation come within the ambit of "sovereign functions" within the meaning of Article 243W and hence not exigible to service tax. c. Ganpati mega builders (I) Pvt. Ltd. (58 GSTL 324) Herein it was held that construction services falling within the purview of Article 243G & W provided to JNNURM, Mandi Samiti & Mandi Parishad & other municipal bodies are not subject to service tax. d. Cuddalore Municipality (55 GSTL 397) Wherein it was reiterated that services provided to Municipalities with respect to functions specified in article 243 G & W are not chargeable to service tax. 2.12. The applicant provides technical management consultancy services to the MJP, these services are related to water supply, irrigation & sewage management. The aforesaid services have been entrusted to the State Governments, panchayats & municipalities under art....
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....k of water supply/drainage schemes undertaken which is outsourced to the applicants is being executed & controlled by the Central/State Government as a part of Jal Jeevan Mission: a. Operational Guidelines issued by Government of India Ministry of Jal Shakti in December 2019. Specific attention is drawn to Financial Planning & Funding at Sr no 7 page no 44 to 53 of the document. b. Funds Allocation order no 682 dated 28-04-23 issued by State Water & Sanitation Mission Director allocating the funds to various districts for Project Management Consultancy under which the work of the applicant falls. c. Government of Maharashtra Resolution of Water Supply & Sanitation Department dated 17-06-2021 appointing Under Secretary as the Drawing & Disbursing Officer & Deputy Secretary as the controlling officer. 2.1.3 Thus, even in case of services rendered post 01.01.2022, the applicant submits that the services rendered, though apparently rendered to MJP, become services rendered to State Government/Central Government because the MJP in the instant case is working as an agent of the Government in execution of a constitutional duty/function. Therefore, the Applica....
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....he State Governments/ municipalities, as principals, are executing the water supply & disposal schemes through their agent MJP. The payments made by MJP, in fulfilment of the constitutional of duties the State/Central/Municipality Governments must be construed as payment by an agent on behalf of the respective principal. The principle of common law that payment by agent amounts to payment by principal applies with full force in the facts & circumstances of the presently impugned transaction therefore the respective Government's become the service recipient under Section 2 (93) of GST Act. 2.4. As specified before now, water supply, irrigation, canaling, drainage and other related functions are responsibilities of the Centre & State Governments, as per Entry 56 of List & Entry 17 of List Il, respectively, of the Indian Constitution. The applicant submits that where the makers of the constitution have assigned a certain responsibility upon the government. The government cannot, by enacting a legislation or otherwise, further delegate the same to any other authority & even when such activity is delegated it remains to be the responsibility of the respective Government as per the sc....
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.... their Constitutional function. 2.5. The applicant has annexed all the relevant documents in support of the averments. If the Hon'ble Authority for Advance Ruling desires certain more information &/or documents, the applicant is ready & willing to supply the same. 2.6 Additional Submission dated 26.06.2024 Kindly find below common additional argument points on facts & law in respect of all the four applicants: - 2.6.1. Water is a State Subject. Entry 17 of List II VII Schedule lays down Water, that is to say, water supplies, irrigation and canals, drainage and embankments, water storage and water power subject to the provisions of entry 56 of List I. List I entry 56 deals with interstate rivers. As regards supply of water, the Water policy has defined major projects & minor projects. The former are those that have an irrigation potential of more than 2000 hectares whereas less than 2000 hectares are minor projects. Schedule XI entry 3 mentions "Minor irrigation, water management and watershed development." As within the realm of panchayats. Thus, the major projects are within the realm of State Governments. 2.6.2. It is in discharge of this Constitutional function th....
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....y bill that becomes a Finance Act upon passage, duly passed in the Parliament/ Assembly having the force of law. The above statement also applies with full force to the budgetary support by State Government. Section 2 (93) defines recipient of service as the person who is liable to pay the consideration where consideration is payable for the supply. In the present case where the payment is authorized through the Central/ State Budget, by virtue of the respective finance Act, the concerned Government is legally liable to pay the sum earmarked & appropriated to a given expenditure head & therefore they become the person liable to pay & consequently the service receiver is the Central/ State Government. The applicants herein say & submit that their bills are cleared only when the amounts are received from budgetary support. Kindly note that all the arguments are restricted & limited to schemes implemented through Jal Jeevan Mission which is a Central mission scheme. 2.6.6. The payments received by the applicants is through Public Finance Management System (PFMS). PFMS is a web based financial application developed & Implemented by Controller of Accounts. Department of Expenditure. ....
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.... from other stake holders are involved similarly the present application is not intended in respect of schemes implemented through Commercial Borrowings. 2.6.11. Therefore, given the fact that payment is made through a designated account not in control of MJP rather in full control of Central/ State Government, JJM as a scheme entails the responsibility of Central/ State Government in making the payments thus making them the person liable to pay within the meaning of Section 2 (93). 2.6.12. While interpreting the clause of payment, if one was to consider, the event of non- payment on the part of receiver, such scenario would lead to infringement of finance bill apart from the breach of contract. In such case the statutory liability to pay & incur the expenditure as per finance bill takes precedence over the contractual liability as per clause 5.5. of the empanelment agreement, while interpreting Section 2 (93), i.e. person liable to pay. 2.6.13. Section 2 (93) specifically includes an agent acting on behalf of principal as recipient, the present facts clearly point out that MIP who is acting as an agent of Central/ State Government thus making the latter recipient of servi....
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....upply water. It is in this context that the applicants submit that the State/ Central Government are making the payments being Constitutionally & legally liable to make payments for the water supply schemes. 2.7.4. The immediate issue that arises is then what is the impact of the Governments above legal duty to pay in the present matter where the contractual obligation is undertaken by MJP then who is to be reckoned as the person liable to pay as per Section 2 (93) of GST Act. The applicant submits that the legal liability to pay overrides the contractual liability to pay. The above proposition may be supported by an example. Say the legal liability to pay GST is on supplier u/s 9 (1) in respect of transactions liable to forward charge. Suppose in a given case the above liability is contractually undertaken by the receiver or buyer. Even then the legal liability to pay overrides the contractual obligation undertaken & remains with the supplier, Similarly, it is submitted, that in the present case despite the fact that MJP has undertaken the contractual liability to pay, the same is overridden by the Governments Constitutional & Legal liability to pay. 2.7.5. Alternatively, in....
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.... perused the documents on record, relevant notifications, circulars, amendments, facts of the matter and all the questions raised by the applicant. Based upon these, submission from this office is as follows: 3.1 M/s. Geospatial Studio LLP having GSTN No. 27AATFG9502A1ZE (hereinafter referred to as the taxpayer) is a partnership firm and engaged providing surface surveying and map-making services, project services management services for construction projects. The taxpayer is providing services to various Government, Semi-Government, Government Corporation & Quasi-Government Institutions. The taxpayer vide subject Government application has informed that they are providing services to Maharashtra Jeevan Pradhikaran (MJP) as a part of Jal Jeevan Mission and the services provided by them were exempted in GST regime as well as under the existing law (Finance Act, 1994). The taxpayer has sought determination of taxability of said services provided by them before 01-01-2022 and after 01-01-2022. 3.2. In this connection, the relevant legal provisions in this regard under the GST regime are as under: - 3.2.1 As per Serial No. 3 of Notification No. 12/2017-CT (Rate) dated 28-06-20....
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....x (Rate) dated 18-11-2021, further amendments to amended notification No. 12/2017-Central Tax (Rate), 28-06-2017 has been made and whereby against serial number 3 & 3A in the heading "Description of Services", the words "or a Governmental authority or a Government Entity" has been omitted with effect from 01-01-2022. 3.3. In view of the above legal position, prior to 01-01-2022 i.e. before issuance of Notification No. 16/2021-Central Tax (Rate) dated 18-11-2021, the taxability of the services has been determined in the light of definition of Governmental Authority & Government Entity as given in Notification No. 32/2017-Central Tax (Rate) dated 13-10-2017. Hence, as regard to the question of taxability of services provided by the taxpayer to Maharashtra Jeevan Pradhikaran (MJP) prior to 01-01-2022, from the documents available on record, it cannot be ascertained that MJP is set up as an authority or a board or other body including a society, trust, corporation by an Act of Parliament or a State Legislature with 90 per cent or more participation by way of equity or control. Therefore, it appears that even prior to 01-01-2022, the exemption claimed shall not be admissible. 3.4,....
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....led survey preparing proposal for getting requisite. iii. Providing services for preparation of Tender Documents and Bid Process Management including preparing proposal for getting requisite permissions from various concern competent authority. iv. Functioning as Project Management Consultant & Technical Auditor. v. Supervision and Monitoring of Operation and Maintenance (O&M) and asset management for a period of maximum one year. (Emphasis supplied) (c.) Para 3- The MJP hereby agrees to pay the Consultant in consideration of the performance of the Services such amounts as may become payable under the provisions of the agreement at the times and in the manner prescribed in the Consultancy Agreement. (Emphasis supplied) Para 4 In consideration of the payments to be made by the MJP to the Consultant as hereinafter mentioned in Clause 4 of the Consultancy Agreement, the consultant hereby agrees with the MJP to perform the Services of Project Development & Management Support" as CLASS I Consultant for Konkan Region in conformity with the provision of the Agreement. (Emphasis supplied) 5.1.5. Important rele....
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....ly supported may be withheld from payment. (Emphasis supplied) 5.1.6. The applicant has submitted copy of invoice issued to the MJP vide Tax invoice number GST 003 dated 21-12-2021 in name of Executive Engineer Maharashtra Jeevan Pradhikaran Division-Mangaon, District, Raigad. Description of services is "Preparation of PFR & BPR for Devnhave WSS under Jal Jivan Mission, Tal. Khalapur Dist. Raigad services for water supplies scheme". Total value of the invoice amount is Rs. 5,62,000/-. No GST is shown separately. Another Invoice submitted - Tax invoice number GST 002 dated 15-06-2022 in name of Executive Engineer Maharashtra Jeevan Pradhikaran, Division-Mangaon, District, Raigad. Description of services is "Preparation of PFR & BPR for Devnhave WSS under Jal Jivan Mission, Tal. Khalapur Dist. Raigad services for water supplies scheme". Total value of the invoice amount is Rs. 5.62,000 on w2hich SGST & CGST are charged at Rs 50.580/- each at rate of 9%. SAC/ HSN code of the services given is stated to be 998331. (Emphasis supplied) 5.1.7. The applicant has submitted payment receipt Advice with its application. The payment receipt advise is actually "PFMS generated DSC tra....
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....o. 11/2017-Central Tax (Rate) dated 28th June 2017. Sr.No. Chapter, Section or Heading Description of Service Rate (percent.). Condition (1) (2) (3) (4) (5) 18 Section 8 Business and Production Services 21 Heading 9983 (Other professional, technical and business services) (ii) Other professional, technical and business services other than [(i) and (ia) above] [and serial number 38 below] media. 9 - 5.3.1. Applicants submission- These services are classifiable under HSN Code/ SAC code -998399-Other professional, technical and business services n.e.c., under the head Business and Production Services, covered at Sr No 21 in the Notification No 11/2017-Central Tax (Rate)- dated 28th June 2017 and are taxable at rate of 18% (9% CGST & SGST each), wherever exemption is not applicable. 5.3.2. Submission of the Jurisdictional Officer: - The Officer stated that supplies to MJP are taxable and not exempted whether before 01-01-2022 or thereafter. Reproduced in detail in Paragraph No 3 of this Order. 5.3.3. Findings. observations, discussion& decision: The services supplied by the applicant are in natu....
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....s and procedure. 4.1. Any law enacted in India has to be interpreted & construed in harmony with the provisions of the Constitution or otherwise it falls prey to the vice of unconstitutionality. If as per the Constitution a given activity is the function/ duty or responsibility of State/Central Government or local Government, then, despite the fact that apparently a body corporate owned by Government is entrusted with the function, the activities of the said body corporate have to be construed as an agent of the respective Government. For all the above reasons, the applicant prays that it be held that despite the deletion of words Government Authority/ Entity from notification no 12/2017 with effect from 01-01-2022, the activity performed & rendered by the applicant in respect of Jal Jeevan Mission remain to be rendered to the respective Government who has financed the above activity through their budget allocations as a part of their Constitutional function. 5.4.2 Submission of the Jurisdictional Officer: - The Officer stated that supplies to MJP are taxable and not exempted whether before Ol01-2022 or thereafter. Reproduced in detail in Paragraph No 3 of this Order. 5....
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....he Authority or that it is signing contract on behalf of the State or Central Government. Relevant clauses are as under, This Agreement (hereinafter called the March, "Contract") is made at Mumbai on 30^th of 2021 between the Maharashtra Jeevan Pradhikaran (MJP) having its registered office at 4th Floor, Express Towers, Ramnath Goenka Marg, Nariman Point, Mumbai, Maharashtra 400021. (Herein after called "the MJP" which expression shall means and includes its successor or succession and permitted assigns) of the one part. 3 The MJP hereby agrees to pav the Consultant in consideration of the performance of the Services such amounts as may become payable under the provisions of the agreement at the times and in the manner prescribed in the Consultancy Agreement. 4 In consideration of the payments to be made by the MJP to the Consultant as hereinafter mentioned in Clause 4 Of the Consultancy Agreement, the consultant hereby agrees with the MJP to perform the Services of Project Development & Management Support" as CLASS Il Consultant for Pune Region in conformity with the provision of the Agreement. (Emphasis supplied) c. Provisions of GST A....
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.... 66, has explained the purpose, Scope and Rights arising out of Grants under Article 282 has explained as under, "This provision vests in the Centre a very broad power to give grants to the States for any specific public purpose. The attitude of the courts is not to interfere this matter and leave it to the judgment of the Central Government. The proper place to criticise any grant by the government is the legislature and not the courts" The grants given under Art. 282 are also known as discretionary grants, the reason being that the Centre is under no obligation to give these grants to any State; the Centre may give such a grant to one State and not to another, and the matter lies solely within the Centre's discretion. The use of the word 'may' in Art. 282 signifies the discretionary nature of these pants. Unlike the 'fiscal need' grants under Art. 275, these grants lie outside the purview of the Finance Commission. The technique for grants under Art. 282 is used for a number of purposes. There are programmes which fall within the State sphere for purposes of legislation and administration, but interested in their implementation. Therefore, in our view S....
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....s agent of State in Common Law and hence supplies made to MIP are in fact supplies made to the State Government, is contrary to the express provisions of section 15, 25 and Para v2 of Schedule I of the GST Act, as aforesaid. For purpose of GST, these are distinct Persons. 5.4.4 Financial Bill- after its passage thereof in parliament- The respective Governments become liable to pay for the Developmental schemes related to Constitutional functions. And these provisions of Finance Act, will override the provisions of the MJP Act, thereby making respective Governments, as persons liable to pay to the applicant. Hence a as per provisions of section 2 (93) of the GST Act, 2017 and, they shall be treated to be recipient of service. Therefore, any service provided to MIP under Jal Jeevan Mission whether before 01-01-2022 or after is in fact service provided to the Central Government and State Government 50% respectively, and exempted from tax as per exemption Entry No. 3 even after deletion of word "Government Authority" from the said entry. 5.4.5. Submission of the Jurisdictional Officer: - The Officer stated that supplies to MJP are taxable and not exempted whether before 01-01-....
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....ate, at the Floor of the House, as to whether the expenditure is justified and can be treated as in 'public interest' or not; whether it serves any public interest to give donation of Rs. 1 Crore to the school, which is not located in the State Of Punjab, but in Himachal Pradesh; whether the expenditure could be appropriated to the said Programme/scheme for which it was allocated and spending the amount in the aforesaid manner amounts to violating the provisions of the said Programme or not; whether a sum or Rs. 1 Croce should be given to a school, which otherwise enjoys robust financial health and on the other hand, the State of Punjab is unable to even release grant-in-aid to the aided schools situated in its own State because of which the teachers of this State are not able to get salaries for several months as alleged by the petitioner; whether the amount is sanctioned only because the respondent No.4 is the alumni of the said school and was invited to the valedictory function of 165th Foundation Celebration of the said School? 22. All these issues need to be debated by the Legislature and are to be left to its wisdom. adhering to the principles of separation of powers....
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.... above instituted or to be instituted or defended by or against the State Government before the appointed date may be continued, or instituted, or defended by or against the Authority. b. Decision- Property created under the Water supply schemes implemented by the MIP vests in MJP only, and not with the Government. Hence the argument being contrary to law is not accepted. 5.4.10 The work executed in this contract by the applicant are related to "Jal Jivan Mission" scheme launched by the Government of India, in 2019, to provide potable water is available to the last village and town through pipeline, It is further submitted that as per government resoiution, 50% share of the expenditure incurred for the scheme is going to be is borne and shared by the central government and the remaining 50% by the state government. Hence it is submitted that both these Governments are liable to pay the applicant the consideration for services supplied by it to MJP & the Governments are recipient of supplies as per provisions of section 2 (93) the GST act. Therefore any service provided to MJP under Jal Jivan Mission whether before 01-01-2022 or after is in fact service provided to the Central....
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....ent due to shortage of funds or any other reason no extra payment or Interest will be payable on account of delay of payment, however; MJP will tried to release payment as early as possible from other sources of MJP by taking approval from competent authority. The Maharashtra Jeevan Pradhikaran shall make the payment of the Consultants periodically as given in schedule of payment above within Thirty days on receipt of invoice from the consultant after the receipt by the Maharashtra Jeevan Pradhikaran of bills with supporting documents. Only such portion of a monthly statement that is not satisfactorily supported may be withheld from payment. From the terms of tender documents and Contract signed by the applicant; no term provides that "The State Government of Maharashtra" is liable for payment to the applicant. The applicant did not produce any document is support of his contention that Government of Maharashtra" is liable for payment to the applicant. (b) Secondly- Scope of supply under section 7 of the GST Act is as under, Section 7. Scope of supply. "(1) For the purpcses of this AC't, the expression - "supply" includes- (a) all forms of supply of goods or se....
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.... The State Government may guarantee the repayment of any loan and payment of interest on ali or anv of the loans given or transferred to the Authority for the purposes of this Act. 5.4.13 "Jal Jeevan Mission-Govt Resolution-Water Supply and Sanitation Department Government Decision No.: JJM- 2019/Pra. Kra.No.138/PAPU-10 (07), G.T. Hospital Premises, New Ministry, Mumbai - 400 001 Dated: 04 September, 2020-which lays down guidelines for implementation of Jal Jeevan Mission in Maharashtra, through State. Loose translation is as under, Para 6- Organizational Mechanism for Jeevan Mission: Institutional mechanisms are being created as follows. Jal Jeevan Mission Guidelines dated 25.12.2D19 by the Central Govt is a time bound programme. A strong four-tier organizational structure has been created to achieve the objectives within the prescribed time frame. It is the State Water and Sanitation Mission (SWSM) at the level of "National Jal Jeevan Mission" (NJJM) at the second level. District Water and Sanitation Mission (DWSM) & Bar Rural Water Supply and Sanitation Committee (VWSC). Para- 6.1- State Water and Sanitation Mission (SWSM)- 6.1.1- For implementation of Wate....
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.... be said to be payment made by the Central Government & State Government in ratio of 50% each are made by them directly to the applicant. From these facts and findings and aforesaid discussion. it is decided that, the Jal Jeevan Mission is implemented through SWSM, which is Society and has authority to undertake work, as per guidelines of the Jal Jeevan Mission. Authority and responsibility to Open Bank account. Both the Governments will transfer funds as grants in this account. Money is not directly going to be paid to the vendors/ contractors of SWSM, directly by respective Governments. Use of PFMS is binding. Hence it can not be said that the respective Governments are liable to pay to the vendors / contractors making supply to SWSM or MJP, as the case may be. 5.4.15 Payment received through PFMS, proves that both the Central Governments have paid to applicant for the services supplied by them, hence are services provided to the Governments and not MJP, As per operational guidelines of "Jal Jeevan mission by ministry of Jal Shakti. The applicant has received the payment through Public Financial Management System "PFMS" rules that the central government and state gove....
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....s to the SSBMG within 15 days of transfer of funds from DDWS along with matching State share. In case of advance State share is released by the State Governments, the same can be adjusted against the Centre share released in the subsequent year(s). Funds under SBMG will be released to the State / UTS only after the respective Government provides the undertaking that funds earmarked under 15th Finance Commission grants for sanitation activities are being devolved to rural local bodies. The States/UTs will operate a single savings bank account in any Scheduled Commercial Bank (except foreign banks) or a bank authorized by the State Government for receipt of SBMG funds and all transactions relating to SBMG including Central share. State share. or any other receipt. All the existing accounts for SBMG at District / Block / GP levels will be closed after transferring the unspent balance of those accounts to the State nodal account. The details of the SSBMG nodal bank account have to be communicated to DDWS along with the name of the bank. IFSC Code and Account Number. etc. and should not be changed during the implementation of the project without prior permission of the DDWS. The Stat....
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....FT, which is "National Electronic Fund Transfer (NEFT) is an online fund transfer system introduced by the Reserve Bank of India (RBI) in November 2005. This nationwide payment system ensures a safe and faster method of fund transfer between banks across the country. This fund transfer system operates on a deferred net settlement (DNS) basis, under which the amount will be settled in batches only at a particular point in time. To initiate a NEFT transfer, the Bank IFSC Code is a must, along with other details such as bank account number, bank branch and account holder name, among other details. PFMS is similar to NEFT. but PFMS has other documentation. payment processing, accounting, auditing facility and movement of funds iust in time facilities, which are absent in NEFT. PFMS is a system through which funds flow from various governments to the various government authorities, various implementing agencies/ institutes which government schemes, Each such implementing agency has its own bank accou nt one or many depending upon scheme etc. Government grants are transferred to such implementing agencies accounts, only when any bill is processed by the implementing agency. This the g....
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....provided to the Central Government, State Government or Union territory or local authority ***(or a Governmental authority or a 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 any function entrusted to a Municipality under article 243W of the Constitution. NIL NIL *** Sr. No. 3, in the entry in column (3). the words 'or a Governmental authoritv or a @vernment Entity' omitted by Notification No. 16/2021- Central Tax (Rate) dated 18-112021 (W.e.f. 01 January 2022). 2. Definitions. - For the purposes of this notification, unless the context otherwise requires, [(zf) "Government Authority" means an authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90per cent. or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution; 5.5.2. Submission of the Applicant- In this regard also, the applicant has argued that Supply of ....
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.... is "Governmental Authority" as required in entry number 3 & defined in definition 2 (zf) of the exemption notification. a. Submission of Applicant- It is submitted that the MJP is set up under "The Maharashtra Jeevan Authority Act, 1976" by Legislature of Maharashtra and hence it is Governmental Authority as defined in definition (zf) of the exemption notification. b. Submission of the Jurisdictional Officer is as under: From the documents available on record, it cannot be ascertained that MJP is set up as an authority or a board or other body including a society, trust, corporation by an Act of Parliament or a State Legislature with 90 per cent or more participation by way of equity or control, Therefore, it appears that even prior to 01-01-2022, the exemption claimed shall not be admissible. c. FINDING OBSERVATIONS AND DISCUSSION- Definition clause 2 (zf) of the notification is defines [(zf) "Governmental Authorit" means an authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90per cent. or more participation by way of equity or control, to ....
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....ing this entry not applicable of supply of pure services to the "or a Government Authority or a Government Entity; (a) This decision is supported by principle laid down by Hon'ble Supreme court in case of New Okhla Industrial Development vs Chief Commissioner of Income Tax, in CIVIL APPEAL NOS.792-793 OF 2014 decided on 2 July, 2018. where the issue of benefits of exemption available to Governmental Authorities vide Section 10 (20A), and effect of its deletion on the levy of Income Tax is decided. The appellant-New Okhla Industrial Development Authority has been constituted under Section 3 of the U.P. Industrial Area Development Act, 1976. Earlier on 14-02-2000, High Court held that it is covered by the exemption under Section 10 (20A) of l.T. Act, 1961. However, sub-section (20A) is now deleted w.e.f 01-04-2003. In brief provisions are as under, "Section 10 - In computinq the total income of a previous year of any person. any income fallinq within anv of the followinq clauses shall not be included- (20). the income of a locat authority which is chargeable under the head "Income from house property", "Capital gains" or "Income from other sources" orfrom a er....
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....Municipality" in clause (e) of Article 243P. Thus. the appellant is not clea rlv included in sub-clause (ii) of Explanation. It is not even the case of the appellant that the appellant is covered by Section 10(20) except clause (ii). 56. Thus, we are of the considered opinion that the appellant is not covered by the definition of local authority as contained in Explanation to Section 10(20). 57. In view of what has been stated above, we dismiss these appeals." b. This decision is supported by principle laid down by Constitution Bench of Hon'ble Supreme Court has in case of Commissioner Of Central Excise, New Delhi Versus M/S Hari Chand Shri Gopal & Others etc. etc. in CIVIL APPEAL NOS. 1878-1880 oF 2004 decided on November 18, 2010, in para 22 has held as under, "22. A person who claims exemption or concession has to establish that he is entitled to that exemption or concession. A provision providing for an exem ption, concession or exception, as the case may be, has to be construed strictly with certain exceptions depending upon the settings on which the provision has been placed in the Statute and the object and purpose to be achieved. If exemption i....