TaxTMI 
TaxTMI 
2025 (2) TMI 95
X X X X Extracts X X X X
X X X X Extracts X X X X
....t the Advance Ruling No. GUJ/GAAR/R/2022/43 dated 28.9.2022. 3. Briefly, the facts are enumerated below for ease of reference: * the appellant is engaged in the manufacturing of computer forms, cut sheets, printed forms & is also engaged in trading of printers, cartridges, laptops, barcode stickers, OMR Sheet, educational booklets, etc.; * they provide below mentioned services to Gujarat Public Service Commission (GPSC) and Gujarat Panchayat Service Selection Board (GPSSB); Sr.No. Services Provided to Nature of services 1 GPSC ICR/OCR/OMR scanning services, capturing and generation of soft data, linkup of soft data with pre-examination data. Result processing of examination and preparation of various reports (Post examination services) 2 GPSSB Printing of question paper and OMR sheet having serial numbering and barcode. (The scope of work of the applicant relates to compose, typeset, print, pack, transport and supply sealed Question Papers/OMR) and ICR/OCR/OMR scanning. * the appellant is of the view that the aforementioned services provided to GPSC and GPSSB are exempted in terms of entries 3 and 3A of chapter 99 of the Notification 12/2017-CT (R). 4. In view of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n entrusted to Municipality under article 243 W of the Constitution of India; * that the services supplied to GPSC is not eligible for exemption under serial no. 3 of notification, ibid. follows: 6. The GAAR, vide the impugned ruling dated 18.10.2021, held as follows: "Ruling (i) the applicant is not eligible to the exemption under entry No. 3 and 3A of notification No. 12/2017-CT (R) dated 28-6-2017 as amended for supply of service to the Gujarat Panchayat Service Selection Board. (ii) the applicant services supplied to the Gujarat Public Service Commission do not fall under the functions entrusted to a Panchayat under article 243G of the Constitution, hence applicant is not eligible to the exemption under entry No. 3 and 3A of notification No. 12/2017-CT (R) dated 28-6-2017 as amended for supply of service to the Gujarat Public Service Commission." 7. Aggrieved by the impugned Ruling dated 28.09.2022, the appellant is before us, raising the following contentions, viz * the appellant has relied upon the judgements in the case of Ajit singh AIR 1967 856, The Rajasthan State Electricity Board 1967 (3) SCR 377 & RC Jain AIR 1981 SC 95; * the appellant has relied upon the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely:- Table Sl. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 1 2 3 4 5 3 Chapter 99 Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental 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. Nil Nil Notification No. 2/2018-CT (Rate) dated 25.01.2018 In the said notification, in the Table....
X X X X Extracts X X X X
X X X X Extracts X X X X
....exemption notification is to be strictly interpreted in terms of the judgement of the Constitution Bench of the Hon'ble SC in the case of Dilip Kumar and Company [2018 (361) ELT 577 (SC)] wherein it was held as follows [relevant extracts]: "52. To sum up, we answer the reference holding as under (1) Exemption notification should be interpreted strictly; the burden of proving applicability would be on the assessee to show that his case comes within the parameters of the exemption clause or exemption notification. (2) When there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the subject/assessee and it must be interpreted in favour of the revenue. (3) The ratio in Sun Export case (supra) is not correct and all the decisions which took similar view as in Sun Export case (supra) stands overruled." 13. Keeping the above in mind, we move on to the first question on which the appellant has sought ruling in relation to services provided to the GPSSB ie whether the services provided to the Panchayat Service Board, relating to Printing of question paper and OMR sheet having serial numbering and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e value of the composite supply; * that the services are provided to the Central Government, State Government, Union territory or local authority; * by way of any activity in relation to any function entrusted to a Panchayat under article 243G * Municipality under article 243 W of the Constitution of India. 19. Now, GPSSB is neither a Central/State Government nor a Union territory. Further as far as Local authority is concerned, the term having been defined under the CGST Act, there appears to be no need to borrow it from elsewhere. On going through each of the clauses from 'a' to 'g' of the definition of local authority, reproduced supra, we find that the GPSSB does not fall within the ambit of either of the sub-clauses. Thus, GPSSB is neither a Central Government, State Government, Union Territory or a local authority. The primary condition of the composite services having been provided to a Central Government, State Government, Union territory or local authority, not having been satisfied, the appellant is not eligible for the benefit of the notification. We thus concur with the finding of the GAAR. Even otherwise, nothing is produced by the appellant, com....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o it under that article]; After having gone through the definition supra, we do not agree with the contention of the appellant that GPSC, a constitutional body, managed, financed by the State Government, which has 100% control, is liable to be classified as the State Government. We, therefore concur with the finding of the GAAR, that the appellant is not eligible for the benefit of the exemption notification, ibid, in respect of the services provided to GPSC. 24. The Appellant has relied upon the judgements in the case of Ajitsingh, The Rajasthan State Electricity Board & R C Jain, ibid. On going through the judgements, we observe as under: [a] Ajitsingh vs State of Punjab [AIR 1967 856] wherein the appeal by special leave was filed before the Hon'ble SC against the judgment of the Punjab High Court dismissing a petition filed by the appellant under Article 226 of the Constitution, praying that the scheme of consolidation of village Ropalon, Tahsil Samrola, District Ludhiana, be quashed. [b] The Rajasthan State Electricity Board [1967 (3) SCR 377]. The Electricity Board of Rajasthan, filed this appeal before the Hon'ble SC wherein before the Hon'ble Rajasthan HC, ....