TaxTMI 
TaxTMI 
2024 (11) TMI 1327
X X X X Extracts X X X X
X X X X Extracts X X X X
....ons of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression "GST Act" would mean the CGST Act and the WBGST Act both. 1.2 The applicant herein provides works contract services to various State Governments, Central Government and Union Territories. The applicant has been rewarded work order by the Government of Manipur (Water Resources Department) (hereinafter referred to as "Govt.") for Development of Water Body/ Reservoir at Lamphelpat, Imphal West, Manipur, India. The applicant entered into contract with the State Government of Manipur (Water Resources Department) vide agreement no. "SE/IC-I/2-37/WB-AGR/2023-24/2 Dated 12/09/2023" for the execution of above-mentioned Works Contract. The purpose of the contract order is to dredge Lamphel....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tract, as defined in clause (119) of section 2 of the GST Act, is treated to be a supply of services under GST vide Para 6(a) Schedule II of the GST Act. The general rate of works contract services is 18%. However, in terms of entry no. 3A of Notification no. 9/2017 Integrated Tax (Rate) dated 28-06-2017, "composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority 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" is exempted from payment of tax. 2.4 The applicant submits that the scope of the work requires the reservoir at Lamphelpat to be maintained primarily to protect the city of Imphal for enhancing the sustainable water potential for supply of water in the Imphal city. As per Cambridge Dictionary, the expression "reservior" means a place for storing liquid, especially a natural or artificial lake providing water for a city or oth....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tification No. 25/2012 dated 20/06/2012 (hereinafter the ST Notification) has been substantially, although not in the same form, continued under GST vide SI No. 3 and 3A of the Exemption Notification. It was held that the above Circular leaves no doubt that the phrase 'in relation to any function', as applied to SI No. 3 or 3A above, makes no substantial difference between SI No. 25(a) of the ST Notification and SI No. 3 or 3A of the Exemption Notification. The AAR examined the applicant's eligibility to the exemption from three aspects: (1) whether the supply being made is pure service or a composite supply, where supply of goods does not exceed more than 25% of the value of the supply, (2) whether the recipient is government, local authority, governmental authority or a government entity, and (3) whether the supply is being made in relation to any function entrusted to a panchayat or a municipality under the Constitution. It was held that the recipient being the lrrigation and Waterways Department, Government of West Bengal is engaged in the development of irrigation and waterways, which includes activities in relation to the function listed under Sl No. 5 of the Elev....
X X X X Extracts X X X X
X X X X Extracts X X X X
....18 integrated Tax (Rate) dated 25/01/2018 would apply to the applicant's supply. 3. Submission of the Revenue 3.1 The concerned officer from the revenue has not expressed any view on the issue raised by the applicant. 4. Observations & Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorized representative of the applicant during personal hearing. 4.2 We find from the documents produced before us that the applicant has received a letter of acceptance from the Office of the Executive Engineer, Electrical and Mechanical Division, Water Resource Department, Government of Manipur in respect of a contract for execution of project of development of water body/reservoir at Lamphelpat, Imphat West, Maniput, India under the project name "Rejuvenation of Lamphelpat water body to alleviate urban flooding, providing sustainable water source for Imphal city and promoting eco tourism". 4.3 The applicant thereafter has entered into an agreement with the Superintending Engineer, Irrigation Circle-I, Water Resources Department, Imphal to undertake earthwork in surface excavation by using suction dredger, 500 CSD with cutter powe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hedule are reproduced herein under for ease of reference: 243G: Powers, authority and responsibilities of Panchayats. -Subject to the provisions of this Constitution the Legislature of a State may, by law, endow the Panchayats with such powers and authority and 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 Panchayats, at the appropriate level, subject to such conditions as may be specified therein, with respect to (a) the preparation of plans for economic development and social justice; (b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule Eleventh Schedule [Article 243G of the Constitution (Seventy-Third Amendment) Act, 1992]: 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor irrigation, water management and watershed development. 4. Animal husbandry, dairying, and poultry. 5. Fisheries. 6. Social forestry and fa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....olid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums. 15. Cattie pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. 4.7 It is thus imperative to examine the nature of the work being undertaken by the applicant in order to determine whether the supply made by the applicant is in relation to any of the functions as enumerated above. In this context, we like to reproduce the 'Project Summary for Public Disclosure' in respect of 'Lamphelpat Waterbody Rejuvenation Project' available ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Langol hill range, was a natural water reservoir and in the past it served as a reservoir, storing excess water of the Luwangli and Nambul rivers during monsoon. It was used to release water to the rivers during the lean season. The planned water body would store excess water from Nambul River and water collected from various sources and catchment areas would be further treated for use in water supply schemes. The waterbody at Lamphelpat that has a huge storage capacity of 124 million cubic metres, is poised to become the lifeline of over 4 lakh residents of Imphal for providing drinking water. The project focuses on the integrated issues relating to flood risk management to ensure safety and security in the Imphal Valley. Additionally, the rejuvenation effort focuses on preserving the ecological integrity of the Nambul River, enhancing aesthetic values, and promoting eco-tourism potential in Imphal city. 4.9 The applicant has argued that 'eco tourism' as mentioned in its agreement as well as acceptance letter, is dredging of Lamphelpat water body which in long run creates different beneficial provisions. Eco tourism, as per definition borrowed from ecoindia.com, means "Touri....