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TMI Blog2019 (3) TMI 1740X X X X Extracts X X X X X X X X Extracts X X X X ..... ant is legally entitled to or entrusted by the State Government with the control or management of a municipal or local fund - NKDA is not a Municipality. It cannot, therefore, be entrusted with the control or management of a municipal fund, as described under section 67 of Chapter VII of Part III of the West Bengal Municipal Act, 1993. Section 3 of the NKDA Act provides that the members of NKDA, including the Chairman, shall be appointed by the State Government. It sanctions and creates or reduces posts of officers under NKDA and, if it thinks necessary, may appoint its officers on deputation to NKDA on such terms and conditions as it may determine (section 10 and 11 of the NKDA Act). The State Government may decide the pay and allowances of the officers and other employees of NKDA and may provide grant towards payment of such salary (section 12 of the NKDA Act). It shall prescribe the manner in which the accounts of NKDA are to be kept and audit such accounts on regular basis (sections 24 and 25 of the NKDA Act) - Section 19 of the NKDA Act provides for constitution of a Development Fund for the purpose of the Act and all amounts received by NKDA, including the charges levied u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missible under section 97(2)(b) (f) of the GST Act. 1.2 The concerned officer from the Revenue submits that question raised in the application is not pending or decided in any proceedings of the GST Act. As such, he does not object to the admissibility of the application. The application is, therefore, admitted. 2. Submission of the Applicant 2.1 The Applicant is a statutory authority constituted under the New Town Kolkata Development Authority Act, 2007 (hereinafter the NKDA Act) for providing various civic services and amenities within the local area of New Town, Kolkata. It provides civic facilities to the area like water supply, drainage, sewage, collection, removal and disposal of solid waste etc. 2.2 The Applicant argues that it is a local authority within the meaning of section 2(69)(c) of the GST Act. It discharges all functions assigned to a Municipality under Article 243W of the Constitution of India. The Applicant has the power to collect various taxes, fees, charges etc. All such taxes, fees and charges are credited to the Development Fund constituted under section 19 of the NKDA Act. Said Development Fund is a Local Fund, as defined under section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egarded as local authorities for the purpose of the GST Act. 4. Observations Findings of the Authority 4.1 Section 2(69) of the GST Act defines a local authority as below. Local authority means- (a) Panchayat as defined in clause (d) of article 243 of the Constitution; (b) a Municipality as defined in clause (e) of article 243P of the Constitution; (c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; (d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006 (41 of 2006); (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; (f) a Development Board constituted under article 371 [and article 371J] of the Constitution; or (g) a Regional Council constituted under article 371A of the Constitution; 4.2 The Applicant claims that NKDA is a local authority under section 2(69)(c) of the GST Act, being an authority other than a Municipal Committee, a Zilla Parishad or a District Board that is legal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivities related to development of a planned township. NKDA, therefore, performs such functions as are listed under the Twelfth Schedule and entrusted to a Municipality under Art 243W of the Constitution. This apart, the State Government may transfer to NKDA in terms of section 17 of the NKDA Act such functions and duties relating to Government under any law which the State Legislature is competent to enact or which are otherwise within the executive power of the State. Section 35 of the NKDA Act allows the Applicant to levy a development charge on the owners or the occupiers of any land within its territorial jurisdiction for carrying out the activities referred to above. 4.5 NKDA is, therefore, a statutory authority established to carry out the functions entrusted to a Municipality under Art 243W of the Constitution. It is a body discharging municipal functions, although not a municipality as required to be constituted under Art 243Q of the Constitution and is fit to be included as other authority under section 2(69)(c) of the GST Act. It will also be a local authority within the meaning of the above section of the GST Act if the Applicant is legally entitled to or entruste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DA, including the charges levied under section 35, grants received from the State Government, shall be credited to the said fund. Correspondence mentioned in para 2.2 above also establishes that NKDA has come under the control of the State Government which would bear its liabilities for salary and other grants and that the Principal AG (A E), Kolkata, approves NKDA to operate a local fund. 4.10 The above discussion establishes that NKDA, a statutory authority discharging municipal functions (although not a municipality as required to be constituted under Art 243Q of the Constitution) within the territorial jurisdiction of New Town, Kolkata, is legally entitled to and entrusted by the State Government with the control or management of a local fund as defined in TR 6.29 of WBTR. It is, therefore, a local authority under section 2(69) (c) of the GST Act and entitled to the exemptions available under the Exemption Notification on the services it supplies. Based on the above discussion, we rule as under: RULING The Applicant is a local authority within the meaning of section 2(69) (c) of the GST Act and is entitled to the exemptions available on the services it supplies ..... X X X X Extracts X X X X X X X X Extracts X X X X
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