2026 (5) TMI 1793

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....FV7395M1Z9. The Applicant is engaged in the business of providing services of Dredging/Desilting, and related support services 2.2 The applicant taxpayer sought through the advance ruling for the purpose of determination of the following question with respect to dredging/desilting and other support services provided to Captain of Ports Department, Government of Goa: "Applicability of Exemption under S1. No. 3 (for Pure Services) or 3A (for composite supply where supply of goods does not constitute more than 25% Of the value) of the Exemption Notification No. 12/2017-CT (Rate) dated 28.06.2017, as amended." 3. Appellant's Submission before Advance Ruling Authority as per ARA Order: For sake of clarity, the submissions filed by the appellant/the applicant before the Advance Ruling Authority is summarised hereunder: (i) the dredging and desilting of River Sal undertaken for the Captain of Ports Department, Government of Goa, is a service provided to the State Government in relation to functions entrusted under Articles 243G and 243W of the Constitution, such as waterways, water management, flood control and environmental protection; (ii) the activity c....

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....y State legislation. (ii) Appellant argues that the notification refers to functions "entrusted under Articles 243G/243W", which are constitutionally listed in the Eleventh and Twelfth Schedules not to State-wise degrees of devolution. (b) Nature of Supply - Pure Service / Composite with ≤ 25% Goods: (i) Dredging/Desilting is essentially a service using own machinery and manpower. (ii) No transfer of material to the Government. (iii) This is certified by the Captain of Ports Department. (iv) Even assuming incidental goods, value is well below 25%, qualifying under Entry 3A. (v) AAR failed to examine the alternative claim under Entry 3A, rendering the order non-speaking. (c) Non-consideration of COP Certificate (Material Evidence): (i) AAR ignored the certificate dated 03.06.2021 issued by Captain of Ports, Goa, confirming: (a) Work relates to development of inland waterways. (b) No transfer of material involved. (ii) Failure to consider this material evidence vitiates the ruling. (d) Findings Based on Hypothetical Inclusion of Preparatory Works is Unsustainable: ....

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.... relief, if any. 5.3 The appellant also requested for personal hearing. PERSONAL HEARING: 6. Shri Suraj Hundekari, Chartered Accountant appeared on behalf of the appellant for personal hearing held on 02.02.2026 before this Authority and reiterated the points deliberated in written submissions or Memorandum of Appeal. He accordingly requested to quash the impugned AAR order dated 23.11.2025. Shri Suraj also requested to file an additional submission with respect to clarification sought by the members on Para 7.5 of CBIC Circular No. 177/09/2022-GST dated 03.08.2022. ADDITIONAL SUBMISSION: 7. The additional submission was filed by the appellant on 10.02.2026, which was mainly focused to the clarification on Para 7.5 of CBIC Circular dated 03.08.2022. In their written (supplementary) submission, they appellant have inter alia submitted that: (i) They were awarded work for desilting/dredging of River Sal (Phase II); (ii) Captain of Ports (COP) is a statutory authority under: • Indian Ports Act, 1908 • Goa Ports Rules, 1983 • Inland Vessels Act, 1917 and Recognised as the Port Authority for minor ports and....

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....to COP qualify for GST exemption under Entry 3 / 3A of Notification 12/2017-CT (Rate). (c) Denial of exemption would defeat the intent of GST law and public welfare policy. The appellant have enclosed following documents with the aforementioned submission filed on 10.02.2026 as relied upon documents to establish their claim of public, civic, and local-authority-type functions of the Captain of Ports Department and to support the claim for GST exemption under Notification No. 12/2017-CT (Rate), Entry 3 / 3A: (i) Aims and Objectives of the Captain of Ports Department, Government of Goa (as available on the official website of the Department) (ii) Citizen's Charter of the Captain of Ports Department, Government of Goa (iii) Annual Administration Report of the Captain of Ports Department for the year 2020-21 (iv) Press Release dated 04.02.2018 issued by the Ministry of Environment, Forest & Climate Change, Government of India (regarding sanction of River Sal pollution control project under NRCP) (v) Government of Goa - Action Plan for Rejuvenation of Polluted Stretches of River Sal (February 2019) (vi) Government o....