TaxTMI 
TaxTMI 
2025 (12) TMI 982
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....or Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions 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 is an entity newly incorporated to take over the business assets along with the provision of liabilities of M/s. Horizen (GSTIN 19BNSPM8492A1ZE) engaged inter-alia in the business as a provider of Digitalisation and Monitoring of Mega Schemes; Enhancer of the Jalmitra application; Digitization of the Piped Water Supply schemes; Collection, Scanning and Digitization of printed distribution drawings along with development of a GIS tool; Relevant Data management, analysis and documentation and other tec....
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....ic Health Engineering across West Bengal. The said business taken over from M/s. Horizen shall run as a going concern by the applicant. The applicant submits that the Public Health Engineering Department (PHED) was created as an independent full-fledged department in 1987. Earlier Health & family Welfare Department of the State Government had a Public Health Engineering Wing. As per Rules of Business of the State Government, Public Health Engineering Department controls the Water Supply & Sanitation Budget of the State Government and undertakes programmes of implementation of water supply services mainly through Public Health Engineering Directorate under its administrative control. Therefore, main activities of PHED are now related to Rural Water Supply and Urban Water Supply in few limited areas of the State outside Kolkata Metropolitan Area (KMA), PHED also controls works of Hill Area Development so far as provision for water supply is concerned. The main function of PHE Department within the jurisdiction of Rural Local Bodies is Supply of safe drinking water based on Ground Water / Surface Water / Sub - Surface Water / Based on other sources. Apart from rural water supply....
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....zed via a web-based desktop interface, utilizing predetermined user matrices for enhanced clarity and insight. The utilization of advanced GIS tools and analysis through WebGIS plays a pivotal role in the integration of technology for PHED data management. This mapping methodology serves the purpose of identifying the coverage of schemes, pinpointing areas that are yet to be covered, tracking the progress and achievements of various projects, and conducting comprehensive analyses pertaining to project monitoring across multiple dimensions. Sensors have been installed at critical points within the water supply infrastructure, such as Water Treatment Plants, Booster Pumping Stations, and Overhead Reservoirs in some mega piped water supply schemes. These sensors continuously monitor key parameters like water levels, discharge rates, and quality metrics. The data collected is fed into a centralized Management Information System (MIS) and a Command and Control Centre, where it is analyzed for strategic planning and operational improvements. This technological approach not only ensures efficient water distribution but also helps in promptly addressing any issues that arise. 2.3 ....
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.... residential and commercial) and investments are personal in nature. Rest all the assets and liabilities being in relation to business, would get transferred from M/s. Horizen to the applicant. 2.6 The applicant submits that since as per the facts of the instant case, all the business assets and liabilities are getting transferred and that the transferee shall run the business as a going concern, therefore, as per sl. no. 2 of the exemption Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 (as amended), the same ought to have been exempt. The said sl. no. is reproduced as hereunder - Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 2 Chapter 99 Services by way of transfer of a going concern, as a whole or an independent part thereof. Nil Nil Now given that the transferee upon the conveyance of the business from M/s. Horizen, would be supplying services and/or issuing invoices in furtherance of, or as an extension of, original work orders commenced under the name of the proprietorship concern, the same ought to be deemed to possess th....
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....g (PHE in short) of Government of West Bengal. The transferor shall be run as a going concern by the applicant. Under this circumstance the applicant has raised the following questions: 1) Whether based on facts of the instant case, transfer of assets and liabilities forming part of the business from M/s. Horizen amounts to "service by way of transfer of a going concern as a whole or an independent part thereof" and is thus an exempt supply as classified under sl. no. 2 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended)? 2) Whether based on facts of the instant case in case where the answer to question no. 1 is in negative, what shall be the classification and the rate of tax? 3) Upon the conveyance of the business to the applicant, a determination is required as to whether all supplies and/or invoices issued in furtherance of, or as an extension of, original work orders commenced under the name of the transferor, shall be deemed to possess the identical taxability as if such transactions had remained with M/s. Horizen or new tax treatment would apply due to the business transfer? 4.3 The applicant submits that as on 31.03.....
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....e above noted transfer amounts to supply under the GST Act. To understand the scope of supply we are referring to relevant portions of Section 7 of the CGST Act, 2017. Section 7. Scope of supply.- (1) For the purposes of this Act, the expression - "supply" includes- (a) all forms of supply of goods 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; (aa) the activities or transactions, by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration. Explanation.- For the purposes of this clause, it is hereby clarified that, notwithstanding anything contained in any other law for the time being in force or any judgment, decree or order of any Court, tribunal or authority, the person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another;] (b) import of services for a consideration whe....
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....context of common parlance and financial standards. From a common parlance, going concern is a company which is assumed to continue its operations, such as trading and providing services, and will not be forced to liquidate its assets in the near future. On the other hand, from financial point of view a going concern must exhibit the following features: • Financial stability: The company is expected to meet its financial obligations as they become due. This includes paying debts on time and having sufficient resources. • Financial health: Companies typically show strong financial health, consistent revenue streams, and a capacity to handle financial challenges without major restructuring. • Long-term planning: There is an absence of any intention or need to liquidate or materially curtail the scale of operations in the near future. • Asset valuation: Financial statements are prepared under the assumption that assets will be used over their useful life, not sold off immediately at a lower liquidation value. • Operational integrity: The core products or services of the company are considered viable and have a reas....
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....State may, by law, endow the Panchayats with such powers and authority as 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. The Eleventh Schedule as available in the Constitution of India downloaded from the official website of Legislative Department, Ministry of Law and Justice, Government of India (https://legislative.gov.in) contains the following entries in respect of Article 243G: 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. Fi....
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....ownloaded from the official website of Legislative Department, Ministry of Law and Justice, Government of India (https://legislative.gov.in) contains the following entries in respect of Article 243W: 1. Urban planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid 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. Cattle pounds; prevention of cruelt....
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....rnment, 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 It is evident from the above table that in order to qualify for Serial no. 3 of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 the following three conditions are to be fulfilled simultaneously. 1. The service must be a pure service. It should not be works contract service or other composite supplies involving supply of any goods. 2. The service is to be provided to the Central or State Government or Union Territory or a local authority or a Governmental authority. 3. The service provided must be done by way of any activity in relation to any function entrusted to a Panchayat or Municipality under article 243G or 243W of the Constitution of India respectively 4.9 During the course of personal hearing the applicant's representative submitted that as on date no work order in the name of the applicant has been given by the....
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....is case the applicant was M/S Horizen having GSTIN 19BNSPM8492A1ZE. The present applicant is a separate entity and separate taxable person having different GSTIN. Here we must refer to the provisions of the CGST Act in respect of applicability of advance ruling. Section 103(1) of the CGST Act provides (1) The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only- (a) on the applicant who had sought it in respect of any matter referred to in sub section (2) of section 97 for advance ruling; (b) on the concerned officer or the jurisdictional officer in respect of the applicant. Again, Section 103(2) provides (2) The advance ruling referred to in sub-section (1) [and sub-section (1A)] shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed. It is clear from the statutory provisions that the questions on which this authority has already pronounced ruling is binding only on the concerned applicant and the concerned jurisdictional officer and none else. On the other hand, the facts and circumstances supporting the earlier rulin....
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....ped Water Supply Schemes (PWSS) etc. are monitored on day-to-day basis. In order to effectively manage this extensive programme the PHE Directorate has integrated advanced technologies into its operations. For this purpose the directorate has implemented digital asset management system to oversee the progress of the work undertaken by it. The utilisation of GIS tools and analysis of WebGIS data plays a crucial role in respect of data management. The work orders referred to here in this paragraph are related to this aspect of functioning of the PHE Directorate and also for organising orientation programmes for stakeholders. 4.11 After the detailed study of the above work orders noted in Paragraph 4.10 we are of the considered view that these work orders per se do not represent any kind of works contract or composite supplies having any supply of goods involved in them. The services can be regarded as pure services. As such, these services can be regarded as Pure Service and qualifies for exemption under serial no. 3 of Notification No. 12/2017-Central Tax (Rate) Dated 28.06.2017, as amended on the following grounds: i) Those are Pure Services. ii) No works contr....