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2025 (3) TMI 157 - AAR - GSTEligibility for exemption benefit under N/N. 12/2017-Central Tax (Rate) dated 18.06.2017 (Sl. No. 3 or 5/6 or 46 as the case may be) as amended - applicant s supply of MVU personnel on contractual basis for implementation of Establishment and Strengthening of Veterinary Hospitals Dispensaries (ESVHD) - Mobile Veterinary Unit (MVU) under Livestock Health Disease Control (LH DC) Scheme - HELD THAT - The Livestock Healthcare Disease Control Scheme is a flagship program of the Government of India where the concerned State Government has been entrusted with the responsibility of developing further guidelines including delineating roles and responsibilities of all functionaries at different levels. The West Bengal Livestock Development Corporation Limited under the administrative control of the Department of Animal Resources Development Govt. of West Bengal is the project implementing agency for such Livestock Healthcare Disease Control Scheme and is one of the designated Service Providers for operating MVUs in the allotted districts of West Bengal. West Bengal Livestock Development Corporation Limited directed the applicant to supply MVU personnel purely on contractual basis maintaining the guidelines of the tender applicable in this case as well as MVU guidelines issued by the competent authority from time to time. The applicant is required to inter alia supply labour/manpower for running the production at different units of the West Bengal Livestock Development Corporation Limited. The applicant has accordingly been supplying MVU personnel and raising tax invoices from time to time - Admittedly the applicant makes supply of labour/manpower for running the production at different units of the West Bengal Livestock Development Corporation Limited. In the instant case the West Bengal Livestock Development Corporation Limited has entered into an agreement with the applicant for supply of MUV personnel on contractual basis for which the applicant issues invoices to the aforesaid implementing agency. Admittedly the West Bengal Livestock Development Corporation Limited is liable to pay the consideration to the applicant for the supply. The applicant has furnished a copy of tax invoice which has been raised to the Managing Director West Bengal Livestock Development Corporation Limited holding GSTIN 19AABCT0907D1ZP. Thus West Bengal Livestock Development Corporation Limited undisputedly is the recipient of supply provided by the applicant meaning thereby the applicant doesn t make any supply to the Department concerned. Whether the applicant who is merely supplying MVU personnel on contractual basis for implementation of Establishment and Strengthening of Veterinary Hospitals Dispensaries (ESVHD) - Mobile Veterinary Unit (MVU) can be regarded as a veterinary clinic? - HELD THAT - In the instant case two separate supplies take place. The first one is made by the applicant to West Bengal Livestock Development Corporation Limited and thereafter another supply is made by West Bengal Livestock Development Corporation Limited to the Department concerned i.e. the Department of Animal Resources Development Govt. of West Bengal. The expression veterinary clinic has not been defined in the GST Act. However in common parlance a veterinary clinic means a building or part of a building where animals are provided with treatment or medication including diagnosis surgery general health care and observation. Here the applicant is merely a supplier of manpower services on contractual basis for running a Mobile Veterinary Unit. Thus such supply of manpower made by the applicant cannot be held as a supply of services by a veterinary clinic in relation to health care of animals or birds and hence such supply fails to qualify for exemption benefit under Sl. No. 46 of the Notification No. 12/2017-Central Tax (Rate) dated 18.06.2017 as amended. Conclusion - The applicant s supply of MVU personnel on contractual basis for implementation of Establishment and Strengthening of Veterinary Hospitals Dispensaries (ESVHD) - Mobile Veterinary Unit (MVU) under Livestock Health Disease Control (LH DC) Scheme is not eligible for exemption benefit under Sl. No. 3 or 3A or 5 or 6 or 46 of the Notification No. 12/2017-Central Tax (Rate) dated 18.06.2017 as amended till date.
ISSUES PRESENTED and CONSIDERED
The core legal questions considered in this judgment are:
ISSUE-WISE DETAILED ANALYSIS 1. Integrated Provision of Services by the Government The applicant argued that the supply of MVU personnel is part of an integrated service provision by the government, as the project is executed under a government scheme. The Court, however, found that two separate supplies occur: one by the applicant to the West Bengal Livestock Development Corporation Limited and another by the Corporation to the concerned Department. Thus, the applicant's supply is not an integrated government service. 2. Exemption under Sl. No. 5 or 6 of the Notification Sl. No. 5 of the notification exempts services by a Governmental Authority relating to functions entrusted to a Panchayat, while Sl. No. 6 exempts services by the Government or local authority. The Court determined that the applicant is neither a Government nor a Governmental Authority. The supply of MVU personnel is made to the West Bengal Livestock Development Corporation Limited, not directly to the Government, disqualifying it from exemption under these entries. 3. Exemption under Sl. No. 3 of the Notification For exemption under Sl. No. 3, the supply must be a pure service provided to the Government or local authority and related to functions entrusted to a Panchayat or Municipality. The Court found that the supply involves both services and goods, and the recipient is the West Bengal Livestock Development Corporation Limited, not a government entity. Therefore, the preconditions for exemption under Sl. No. 3 are not met. 4. Exemption under Sl. No. 46 of the Notification Sl. No. 46 exempts services by a veterinary clinic in relation to animal healthcare. The Court noted that the applicant supplies manpower services and does not operate as a veterinary clinic. Consequently, the supply does not qualify for exemption under this entry. SIGNIFICANT HOLDINGS The Court concluded that the applicant's supply of MVU personnel does not qualify for exemption under any of the specified entries in Notification No. 12/2017-Central Tax (Rate) dated 18.06.2017. The supply is not considered an integrated government service, nor is it provided directly to a government entity. Furthermore, the supply does not meet the criteria for being classified as a service by a veterinary clinic. RULING The applicant's supply of MVU personnel on a contractual basis for the implementation of the "Establishment and Strengthening of Veterinary Hospitals & Dispensaries (ESVHD) - Mobile Veterinary Unit (MVU) under Livestock Health & Disease Control (LH & DC) Scheme" is not eligible for exemption under Sl. No. 3, 3A, 5, 6, or 46 of the Notification No. 12/2017-Central Tax (Rate) dated 18.06.2017, as amended.
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