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TMI Blog2019 (7) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... clause 2(y) of the Exemption Notification and thus serial no 66 of the Exemption Notification is not applicable. Whether supply of such service is eligible for exemption under Sl. No. 14 of Notification No. 12/2017-CT (Rate) dated 28/06/2017? - HELD THAT:- Composite Supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply as defined under Section 2(30) of the GST Act - In the instant case, the Applicant is engaged in supplying flood, laundry service, housekeeping service. etc. which are not naturally bundled with the lodging service. All these components are independent of each other and can be supplied separately It is also evident from the submission of the Appellant that they also provide lodging service without providing food and Day Boarders do not laundry services. Therefore, none of the Services are bundled together in a natural and there appears to be no principal Service. There is no infirmity in the ruling pronounced b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices offered by the Appellant is taxable at the applicable rate. 4. The has filed the instant Appeal against the above Advance Ruling with the prayer to set aside the impugned Advance Ruling passed by the WBAAR on the following grounds: (a) The WBAAR erred in its observation by not treating the Appellant to be an educational institution within the meaning of clause 2(y) of the Exemption Notification as it is providing primary and secondary education through remedial classes to the boarding students. (b) The Appellant has inter alia contended that the WBAAR has failed to appreciate the nature of services provided towards Boarding Fees and Lodging Fees . The natures of these two different services are unique in character and so cannot be treated at par. The WBAAR should have appreciated the true purport and meaning of the terms Boarding and Lodging . The difference is that Boarding denotes food along with other amenities whereas Lodging denotes only accommodation. Thus, the WBAAR has erred in distinguishing the nature of services and proceeded in imposing tax on food at specified rate. (c) The principle activity of the Appellant is to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the students and accordingly covered under the terms and conditions as set out under serial no 66 of the Exemption Notification. The Appellant further stated that the WBAAR misinterpreted the entire term and erred in not treating the applicant as an educational institution. (iii) While providing boarding services the charges are realised in a consolidated manner, the value of food and other like services rendered cannot be artificially segregated and if so done, the entire legislative intention would be defeated. There is also no mechanism under GST laws to segregate the components from such consolidated charges. Since the Appellant provides a number of services in a composite manner, if anyone of the said services is taken out from the said bundle of services, the entire nature of service shall be affected. Hence, bundle of two or more supplies even if one of them is exempted, may continue to cover under the ambit of Composite supply as long as they are naturally bundled and one of them is the principal supply. The Appellant also contends that from the plain reading of section 2(30) of the GST Act, it is amply clear that Composite Supply means the taxable supply o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stance, etc. 9. For the sake of clarity clause 2(y) of the Exemption Notification is reproduced below: Educational Institution means an institution providing services by way of, - (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course. The Appellant is not affiliated to any board/university and does not provide any kind of approved or recognized education in terms of meaning of clause 2(y) of the Exemption Notification. Moreover, the Appellant, M/s. Sarj Educational Centre, in terms of clause 02.1 of the Memorandum of Understanding dated 01 .04.2006 with St Michael s School raises bills directly on the individual students and realizes the consideration directly from them. In the instant case, the Appellant is claiming that it is an educational institution by itself, which appears to be erroneous in view of the clause 05 of the Memorandum of Understanding dated 01.04.2006 where it is specifically mentio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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