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TMI Blog2019 (11) TMI 1364X X X X Extracts X X X X X X X X Extracts X X X X ..... e explanation given to the entry, the support services mentioned are only in relation to agriculture and fishery and animal husbandry. None of the services are mentioned in relation to natural forests. Moreover, agricultural produce and natural forest produce are entirely different and involve different processes starting form plantation to harvesting - Hence in the absence of any specific exemption to that effect, one cannot extend the services that are mentioned in relation to agriculture to those of natural forests. It is a settled law that an exemption or a relief provided in an enactment shall only be interpreted in the exact wording employed in the legislature. Nothing can be extrapolated or inferred to extend the scope of an exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : M/s Mallelli Venkateswara Rao, (hereinafter referred to as the Applicant) having its office at D.No.2-118, S.T. Colony, Chintur (Post Mandal), East Godavari District is a registered firm, under GSTIN 37BCTPM9590D2ZU and engaged in the following activities, 1. Extraction of Timber/Bamboo in natural Forests, 2. Transportation of Timber / Bamboo from natural Forests to the Government Depots, 3. Maintenance of Government. Depots like classification / grading of Timber and Bamboo and wages to mastris for supervision . The applicant had filed an application in form GST ARA-01, Dt: 11.03.2019, by paying required amount of fee for seeking Advance Ruling. On Verification of basic inform ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t work. The bills are paid as per the FSR base rates which were prepared basing on the District Collector's minimum wage rate. Q: whether the GST is applicable for the above works or not? If applicable what percentage and under what item/ HSN code of GST Act. 2) Transportation of Timber/ Bamboo from natural Forests to the Govt. Depots: This work is being carried out by the applicant, who filed lowest tender in the open tender system/ nomination/ piece work contract. This work is carried out using local tribal laborers only for loading and unloading works and using the lorry/ truck. This total work is partly labor oriented (for loading and unloading of timber and bamboo) and partly transportation of timber and bambo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department Officials. The bills as per the FSR rates will be paid to the Contractor by the Forest Department and in turn the contractor will pay the wages to the local tribal laborers who involved in the above Government work. The bills are paid as per the FSR base rates which were prepared basing on the District Collector's minimum wage rate. Q: whether the GST is applicable for the above works or not? If applicable what percentage and under what item/ HSN code of GST Act. 3. Applicant's Interpretation of Law and Facts: The applicant had taken the following stance while interpreting the legal provisions. The applicant submitted that, as per his knowledge and understanding of the GST Act, the type of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case as submitted by the applicant and examined the issues like the taxability, classification, and the applicable rate of tax for the transactions made by the applicant. At the time of Personal Hearing the applicant pleaded that all the transactions made by him would fall in the following category. Entry 24(i) of Notification 11/2017 provides nil rates for the following services. Heading 9986 Support services to agriculture, forestry, fishing animal husbandry. Explanation - Support services to agriculture, forestry, fishing, animal husbandry mean- (i) Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for food, fibre, fuel raw material or other similar products or agricultural produce. The above entry is examined and the version of the applicant that the transactions made by him fall under the above entry is not tenable. What is a support service in relation to the above had been defined by means of an explanation to the same entry. And the explanation had employed the word 'mean' which is restrictive in nature. Thus what is given in explanation shall only mean as support services and nothing else shall. From the explanation given to the entry, the support services mentioned are only in relation to agriculture and fishery and animal husbandry. None of the services are mentioned in relation to natural forests. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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