TaxTMI 
TaxTMI 
2025 (2) TMI 95
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Data Processing Forms P Ltd. (hereinafter referred to as 'appellant') against 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 servic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....GPSC is pure service; • that GPSC though a constitutional body does not qualify as Government/State Government; that the services provided are also not services by way of any activity in relation to any function entrusted to a Panchayat under Article 243G or function 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 th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t portions of circular/clarification & the exemption notification for ease of reference viz, Notification No. 12/2017-CT (Rate) dated 28.6.2017 G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of 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 suppl....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of notification ibid, composite supply of goods 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 by way of any activity in relation to any function entrusted to a Panchayat under article 243G or to a Municipality under article 243 W of the Constitution are exempt. 12. While dealing with an exemption notification, we are mindful of the fact that an 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 cann....
X X X X Extracts X X X X
X X X X Extracts X X X X
....5), 235(6 & 7), 274, ibid, reveals that GPSSB is an integral part of Panchayat system & therefore a 'local authority' and hence is eligible for the benefit of sr. no. 3 & 3A of the notification, ibid. 18. Since, the services rendered to GPSSB are composite services, what needs to be examined is whether the appellant is eligible for Sr. No. 3A of the notification, ibid. For being eligible for Sr. No. 3A of the notification, the appellant has to satisfy the following viz • that there has to be a composite supply of goods & services; • that the value of supply of goods constitutes not more than 25% of the 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ral Government; (b) as respects anything done [after the commencement of the Constitution and before the commencement of the Constitution (Seventh Amendment) Act, 1956], shall mean, in a Part A State, the Governor, in a Part B State, the Rajpramukh, and in a Part C State, the Central Government; [(c) as respects anything done or to be done after the commencement of the Constitution (Seventh Amendment) Act, 1956, shall mean, in a State, the Governor, and in a Union territory, the Central Government; and shall, in relation to functions entrusted under article 258A of the Constitution to the Government of India, include the Central Government acting within the scope of the authority given to 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....