TaxTMI 
TaxTMI 
2024 (10) TMI 1213
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....n Mission which is 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 MJP which are paid to the applicant on services provided before 01.01.2022? 5. Who is the service receiver with in 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. appointment of MJP as an agency to implement water Supply schemes amounts to legation of sovereign function enumerated in Sch. XI & XII with in the frame work of Constitution of India so as to hold that MJP has performed the function entrusted under Article 248G & 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 ST ....
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....r. 3 & 4 of Notification 12/2017. 1.5 In Maharashtra, the Govt. of Maharashtra has enacted the Maharashtra Jeevan Authority Act in 1976 virtue 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 per 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 applic....
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....n. The same are quoted as a matter of illustration. a. Krishi constructions Pvt. Ltd. Versus commissioner of CT, Hyderabad (43 GSTL 236) Wherein it was held that services provided by the Appellant to Government Corporations or Authorities established by the State Government under a legislation or government order are provided to a "Government Authority" with in the meaning of Notification 25/2012. b. Karad nagar parishad versus commissioner of C. Ex. & ST, Kolhapur (20 GST. 288) Where in it was held that regulatory fees charged by the Municipal Corporation come with in the ambit of "sovereign functions" with in the meaning of Article 243W and hence not exigible to service tax. c. Ganpati mega builders (1) Pvt. Ltd. (58 GSTL 324) Here in it was held that construction services falling within the purview of Article 243 G & W provided to JNNURM, Mandi Samiti & Mandi Parishad & other municipal bodies are not subject to service tax. d. Cuddalore Municipality (55 GSTL 397) Where in it was reiterated that services provided to Municipalities with respect to functions specified in article 243 G & We are not chargeable to service tax. 2.1.2 The app....
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....ution of India. The schemes impugned herein, where in the Applicant has rendered pure services are fully financed by the Central Government or the State Government. The Applicant is annexing herewith following documents that clearly & unequivocally show that the work 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 ....
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....al schemes are constitutional responsibilities of the State Governments & the Panchayat Raj Institutions under Article 243G & 243W respectively. The above functions are managed by the Central Government as a mission. In such circumstances, it must be held that the Central Government along with the 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 responsibilities of the Centre & State Governments, as per Entry 56 of List I & Entry 17 of List II respectively, of the Indian Constitution. The applicant submits that where the makers of The Cons....
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....letion 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. 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 Il 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 t....
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....der providing service & a service receiver to whom the service is provided. The question that is raised is who shall be the service receiver in case the money is provided through Budgetary support as a part of Government Scheme. In case of a Centrally sponsored scheme where the payment is through budgetary support, the payment is authorized through a money 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....
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....e implication of para 5.5 of the empanelment contract. It may be noted that the empanelment contract is Standard form contract. MJP as a body corporate having perpetual existence has devised a standard form contract. JJM has been formulated in 2019 with limited time span of 5 years. It is a scheme which contemplates 100% Government funding, as against other schemes where contributions 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 take....
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....eply extempore. Upon further deliberation the applicants submit that water supply, as submitted earlier, is a sovereign function & duty of Government. It is submitted that the present Jal Jeevan Mission which is impugned in the present application has been devised in consequence of the above duty of the respective Governments & payments under Jal Jeevan Mission are made in consequence of the Constitutional/ Legal duty of the sovereign Governments to supply 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 forwar....
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....deleting the words Government Authority/ Entity from notification 12/2017 entry 3 w.e.f. 01-01-22. Lastly, if your Honour are not inclined to accept the above propositions it be held that supplies till 31-12-21 are exempted with in the meaning of notification no 12/ 2017 entry 3 as amended w.e.f. 01-01-22 being to MJP which is a Government Authority/ Entity & supplies after 01-01-22 are taxable @ 18% 3. Submission of the jurisdictional officer; - 3.1 In this said matter, the notice in form ASMT-10 has been issued as per case received from EIU, Mumbai for scrutiny of returns on 30.11.2023 as mentioned by the applicant. The issue parameters in the said notice are I) Parameter-76- comparison of taxable turnover derived from GSTR-7 filed by the recipient vis- a-vis the taxable turnover reported by the taxpayer in his GSTR-3B, 2) Parameter-80- Interest on late filing of GSTR-3B. 3.2. The service rendered by the applicant has been given to Maharashtra Jeevan Pradhikaran (MJP, which is a Government entity and non-Government of Maharashtra. As Maharashtra Jeevan Pradhikarna (MJP) is Maharashtra water supply and sewerage Board (MWSSB) and was established as per MWSSB Act 1976 (Page....
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....Uncontroverted facts of the case, in brief are as under, 5.1.1. M/s. The Nisarga Consultancy, (here in after referred as "Applicant"), is Registered taxable person. 5.1.2. The Maharashtra Jeevan Authority [erstwhile the Maharashtra Jeevan Pradhikaran] (Here in after referred as "MJP"), is a body Corporate set up by The Maharashtra Jeevan Authority Act, 1976 (hereinafter referred as" the MJA Act, 1976"), for rapid development and proper regulation of water supply and sewerage services in the State of Maharashtra. 5.1.3. The MJP has granted a contract for supply of "Technical Consultancy for Project Development and Management support "services to the Applicant vide agreement for Empanelment dated 25" of March 2021. 5.1.4. Important terms of the Contract, necessary for decision are reproduced as under, (a) The agreement between Maharashtra Jala Pradhikaran and The Nisarga Consultancy (Emphasis supplied) (b) Services to be performed by the Consultant are namely: i Carrying out Reconnaissance Surveys and preparation of Feasibility Report. ii Carrying out detailed detail of Tender Documents and Bid Process Management including prepari....
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....work. (c.) Page 64 Para 6.4. Contract price and payments to the Consultants 6.4. Terms and conditions of payment: The rates given in schedule of payments are including GST and statutory taxes. Payments will be made as per payment schedule stated in the Schedule of payment Appendix II. Any other payment shall be made after the conditions listed in the Schedule for such payment have been met, and the consultants have submitted an invoice to the MJP specifying the amount due. If there is delay in payment 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. (Emphasis supplied) ....
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.... Time of supply is on or before 31-12-2021 and rate of tax applicable. 5.2.4 Applicability of entry No. 3 in Notification No. 12/ 2017- Central Tax (Rate) dated 28^th June 2017,. to Supply of Services where Time of Supply is on or after 01-01-2021 and rate of tax applicable. 5.3 What is the classification of the services supplied to Maharashtra Jeevan Pradhikaran ('MJP') as a part of Jal Jeevan Mission which is a mission of Government of India allotted, and its HSN/SAC Code and applicable entry in Notification No. 11/ 2017- Central Tax (Rate) dated 28^th June 2017. The related entry is as under, Heading & Group Service Code (Tariff) Service Description Heading 9983 Business and Production Services Group 99839 Other Professional, technical and business Services. Heading 9983-Group 99839 998399 Other professional, technical and business services n.e.c. Explanatory Note- This service code includes drafting services (detailed layouts, drawings, plans and illustrations of buildings, structures, systems or components from engineering and architectural specifications, done by architectural draftsmen or engineering te....
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.... Bills and Constitutional law, these are supplies to the Central and state Governments, for following reasons- In Brief each of the arguments and decision thereon are as under, 5.4.1. Applicants Submission: -Supply of water is constitutional Duty of the Governments, and hence supplies by him to MJP, are legally supplies made to the Governments, as per Constitution. The Central Government and similarly, the Maharashtra Government also cannot, by enacting a legislation viz the Maharashtra Jeevan Authority Act, 1976, now say that it is no longer responsible for its constitutional duty of providing water, irrigation, canal or sanitation facilities as has been specifically entrusted to it by the Constitution. In order to be compliant with the constitutional provisions of article 243 G & W, it has to be construed that the function of water supply, irrigation, canaling etc. is being carried on by the State Government through the agency of Maharashtra Jeevan Pradhikaran, any attempt to interpret otherwise would mean that the State Government has abdicated its abdicated its function of water supply, irrigation, canaling etc. to the Maharashtra Jeevan Pradhikaran which w....
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....contracts. Secondly, Government of Maharashtra has not given MJP any authority to sign contracts on its behalf. Refer provisions as under, (a). Section 2. In this Act, unless the context otherwise requires, - (i) "Authority" means the Maharashtra Jeevan Authority established under section 3 (b) Chapter II- ESTABLISHMENT CONDUCT OF BUSINESS, DUTIES AND POWERS OF THE AUTHORITY Section 3. -Establishment of the Authority (1) As soon as may be after the commencement of this Act, the State Government shall by notification in the Official Gazette, with effect from a date to be specified there in establish for the purposes of this Act 2 [an Authority] to be called "the Maharashtra Jeeven Authority. (2) The Authority shall be a body corporate, having perpetual succession and a common seal, with powers, subject to the provisions of this Act, to acquire, hold or dispose of property, both moveable and immoveable, and to contract, and may sue or be sued by its corporate name aforesaid. (Emphasis supplied). Section 24. Execution of contracts, etc Every contract or assurance of property on behalf of the Authority shall be in writing a....
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....)............ howsoever described, of the other, shall be deemed to be related." (b) Section 25. Procedure for registration. (4) A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act. (5) Where a person who has obtained or is required to obtain registration in a State or Union territory in respect of an establishment, has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons for the purposes of this Act. (c) SCHEDULE I [See section 7 I- ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION 1 .............. (2) Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business; c. Provisions of Article 282 of the Constitution of India- "282. Expenditure defrayable by the Union or a State out of its reve....
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....nt into the public account of India and the withdrawal of moneys from such account and all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by Parliament, and, until provision in that behalf is so made, shall be regulated by rules made by the President. (2) The custody of the Consolidated Fund of a State and the Contingency Fund of a State, the payment of moneys into such Funds, the withdrawal of moneys therefrom, the custody- of public moneys other than those credited (o such Funds, received by or on behalf of the Government of the State, their payment into the public account of the State and withdrawal of moneys from such account and all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by the Legislature of the State, and, until provision in that behalf is so made, shall be regulated by rules made by the Governor of the State. From the reading of Article it is very clear, that it just regulates the payment of moneys into such Funds, the withdrawal of moneys therefrom, the custody of public moneys other than those credited to such Funds received, by no stretch of imagination....
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....programmes, in the last ten years, have targeted each and every household and individual, through 'housing for all, 'har ghar jal', electricity for all, cooking gas for all, bank accounts and financial services for all, in record time. The book-let Budget at a Glance -of Hon'ble Finance Minister for 2024- to see any such content regarding Jal Jeevan Mission. Para 6 of the Budget Booklet is as under- "6. Total resources being transferred to the States including the devolution of State's share, Grants/Loans and releases under Centrally Sponsored Schemes, etc. in BE 2024-25 is '22,22,264 crore, which shows an increase of '4,13,848 crore over Actuals of FY 2022-23". Page 16 shows Budget outlay for Major Schemes in Which in Heading Core Scheme at Sr No 8- Jal Jeevan Mission? JJM/ National is mentioned and outlay for Fy 2024-25 is mentioned at Rs 70,163/- Crores. Finance Bill 2024 does not contain any statement that The Centre has undertaken liability to pay to the suppliers of the JJM Scheme in the said Budget or Finance Bill. Thus this argument is also without any evidence, hence rejected. The issue of creation of rights against the ....
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....ate or Central Government. 5.4.7 Under the "Jal Jivan Mission" or any work done for water supply Scheme, the whole work completed is property of the government and hence the services supplied by the applicant are services provided to the state government. 5.4.8 Submission of the Jurisdictional Officer is as under: The Officer stated that all these supplies are to MJP as per the contract submitted by the applicant. 5.4.9 Findings, observations and decision: - a. Provisions of vesting of property to MJP is laid down in section 18 of the MJA Act, 1976, which is as under, CHAPTER III, - VESTING OF PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS AND TRANSFER OF EMPLOYEES. 18. (1) From such different dates as may be specified, from time to time, by the State Government (hereinafter in this section referred to as "the appointed date"), - (1). (a) the properties and assets (including water works, buildings, laboratories, stores, vehicles, furniture's and other furnishing), specified in that behalf, which immediately before the appointed date, were vested in the State Government for the purposes of the Maharashtra Environ....
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.... recipient in relation to the goods or Services or both supplied; (Emphasis supplied) 5.4.11 Submission of the Jurisdictional Officer is as under: The Officer stated that all these arguments are not based on evidence submitted by the applicant nor any binding precedent is cited by the applicant. Lastly, these arguments are vague and against express provisions of the GST Law and the contract submitted by the applicant, 5.4.12 Findings, observations and decision: - a. As per terms of contract between the MJP And Applicant, the terms of payment are as under, NOW THIS AGREEMENT WITHNESS AS FOLLOWS - 3 The MJP hereby agrees to pay the Consultant in consideration of the performance of the consideration of the performance of the Services such amounts as may become payable under the provisions of the agreement at s such amounts as may become payable under the provisions of the agreement at the times and in the manner prescribed in the Consultancy Agreement. 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 in consideration of the pay....
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....ds or services or both such as Sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; The provision makes it very clear that supply has underlying contract between two persons to supply goods or services for consideration. In case of applicants' case, it is service provider and other party of contract liable to pay consideration for the supply of service is the MJP. Hence question of third party becoming liable to pay consideration does not arise, either under GST act or as per the terms of contract of this applicant. Last but not least, the applicant could not produce any clause of the Contract for provision of service which states that "The Government of Maharashtra" is liable to pay the consideration of the Contract. Nor could he produce any document where by The Government of Maharashtra has undertaken to pay the consideration. b. The MJA Act,1976- Has made express provisions for Financial Resources & Authority to Contract and section 33 provides that The Government of Maharashtra" is only guarantee the loan taken by MJP. Here consideratio....
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....ission (SWSM)- 6.1.1- For implementation of Water supply and sanitation programs through this Department, State Water and Sanitation Mission is registered on 10-02-2010 under the Society Registration Act, 1860, under the Chairmanship of the Chief Secretary of Government of Maharashtra. The State Water and Sanitation Mission has full responsibility and authority for the planning, implementation and control of Jeevan Mission and sanitation programs in the state. The State Water and Sanitation Mission has full powers to function as per the guidelines of the Jal Jeevan Mission. The State Water and Sanitation Mission (SWSM) is being empowered to act as the implementing mechanism for Jal Jeevan Mission as per the guidelines of the Central Government Para- 8 Financial Matters: Center and state share for this mission will be 50:50. Funds will be reserved according to and state share for this mission will be 50:50. Funds will be reserved according to the schedule caste/tribe population. A total estimated expenditure of Rs. 13668.50 crore is expected to implement Jal Jeevan Mission in the state. These estimates are taken as a These estimates are taken as a rough es....
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....o 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 government have directly paid the consideration to the applicant for the services rendered by him and as both these governments are liable to make payment to the applicant. In view of provisions of subsection (93) of section 2, the supplies may of the services made by the applicant treated as supplies made to the central government and state government for their respective share. 5.4.16 Submission of the Jurisdictional Officer is as under: The Officer did not agree with the applicants' arguments. He relied on the copy of contract submitted by the applicant. 5.4.17 Findings, observations and decision: - a. For decision on this issue exact nature of Public Financial Management System (hereinafter referred as "PFMS") needs to be studied, which is taken from CAG website. (i) The Public Financial Management System (PFMS) is a web-based financial management application developed and implemented ....
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.... 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 States/UTs may use the existing account at their SSBMG level as nodal account. The funds release / advance / transfer / expenditure under the programme at all levels shall be mandatory through the Public Financial Management System (PFMS) of Government of India, All the implementing agencies and below level agencies in the States / UTs will be registered in PFMS as parent-child agency and shall be mapped with Linked State scheme code for SBMG and to the State nodal account - it is also to be ensured that all the transactions shall be mandatorily made in PFMS. Utilization of funds and unspent balance will be monitored through the PFMS for the purpose of release of funds to the States / UTs. b. The procedure of Billing & Payment needs to be understood to decide the issue. (i) The Applicant after provision of services, issues Bill/ Tax Invoice to the MJP in name Applicant after provision of Servi ....
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....just 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 account 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 grants never flow from Government account to beneficiary accounts directly, but through implementing agencies. This it is far fetched argument that money received through PFMS is money paid by Government. 5.4.18 Findings, observations and decision: - The argument of the applicant that services provided to MJP for the Constitutional function of State & Central Governments, for which these Governments are liable to pay the consideration of contract, and as payment is made through PFMS, supplies are in fact made to the Central & State Government. Hence, even after deletion of the word "Government Authorities "with effect from 01-01-2022, from the notification entry number 3, the services provided by the applicant shall be ....
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....ext otherwise requires, [(zf) "Governmental 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 Services by it, to the MJP for Jal Jeevan Mission, are in fact supplies to the Central Government, State Government for the aforesaid reasons. These arguments are found to be is not based on evidence, far-fetched and based on conjectures and surmises and very specious argument and hence rejected and are in fact supplies made to the MJP. 5.5.3 whether the services provided by the applicant as aforesaid are pure services (excluding works contract service or other composite supplies involving supply of any goods)? a. Submission of Applicant- It is submitted that the aforesaid services are pure services. b. Submission of ....
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.... Definition clause 2 (zf) of the notification is defines [(zf) "Governmental 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; As the MJP is set up by an Act of Legislature of Maharashtra State, it is "Governmental Authority', for the purpose of exemption entry at Sr No 3, before the omission of the words from the entry by Notification No. 16/2021- Central Tax (Rate) dated 18-11-2021 (W.e.f. 01 January 2022). We are supported by earlier advance ruling in case of M/s Mekorot Development and Enterprises Limited, order dated 22 September 2021 in GST Ara application number 71 dated 29th November 2019, rendered by Maharashtra Authority of advanced ruling. 5.5.6 Final decision - Supply of services where Time of supply is on or before 31-12-2021. After Considering all the aforesaid facts, provisions of Law, issues and....
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....nciple 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 I.T.Act, 1961. However, seb-section (20A) is now deleted wef 01-04-2003. In brief provisions are as under, "Section 10 - In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included hall not be included- (20). the income of a local authority which is chargeable under the head "Income from house property", "Capital gains" or "Income from other sources" or from a trade or business carried on by it which accrues or arises from the supply of a commodity or service (not being water or ....
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.... 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 exemption, 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 is available on complying with certain conditions, the conditions have to be complied with. The mandatory r....