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TMI Blog2020 (11) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017 as amended? - HELD THAT:- In the case at hand, the activity undertaken by the applicant is disposal of solid waste dumped in the specified yards and the same is Pure Service classifiable under SAC 9994, thus the first criterion is satisfied - The Erode City Municipal Corporation was formed as per the Erode City Municipal Corporation Act 2008 by the Government of Tamil Nadu. The service recipient i.e., Erode City Municipal Corporation, Erode, Tamil Nadu is a local authority. As per Section 2 clause (69) sub-clause (b) of the CGST Act, 2017 Municipality as defined in clause (e) of article 243P the Constitution is a local authority, hence the services are provided to Local Authority and the criterion related to recipient is satisfied. Whether the activity is a function entrusted to a municipality under Article 243W of the Constitution. Sl.No.6 of The Twelfth Schedule to the Constitution under Article 243 W? - HELD THAT:- On a cogent reading of Sl.No. 6 of the Twelfth Schedule to the Constitution and Rule 15 of the Solid Waste Management Rules 2016, it is evident that it is the duty of the local authority to investigate, analyse the existing dumpsites for their poten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act, M/s. Zigma Global Environ Solutions Private Limited, Flat No. 24 kalaimagal Kalvi Nilayam Road, Erode 638 001 (hereinafter called the Applicant) are registered under GST with GSTIN.33AAACZ8255D1ZD. They are the service providers of Municipal Solid Waste (MSW) Management solutions and as an MSW Management company, they offer solutions involving segregation, treatment, recycling of Municipal Solid Waste(MSW) and thus clearing MSW landfills. The services provided by them is mandated under the Solid Waste Management Rules 2016 and Central Pollution Control Board Guidelines for Disposal of Legacy Waste, February 2019. The applicant has sought Advance Ruling on: 1. Classification of the services viz Solid waste management - Revamping of existing dumped Garbage in compost yards by Bio -mining process provided by the applicant to M/s. Erode City Municipal Corporation, Erode? 2. Whether aforesaid services provided by the applicant are exempted under Sl. No. 3 of notifications ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bull-dozer or any other earth moving equipment; Deployment of necessary manpower, materials, equipment s, tools and construction of plants and shed sand creation of facilities for handling, separating, segregating and storing; providing security arrangement for the plan project site, machineries, equipment etc; Thus they have to remove the legacy waste dumped by bio-mining process on putting up the processing plant/legacy waste removal plant under Design, Build, Own and Operate(DBOO). For the work executed the Erode City Municipal Corporation will give processing charges as quoted by them in the financial quote and accepted as in agreement, based on the net quantity of input waste processed from the Erode dump yard by them. As per the agreement dated 19/01/2019, processing fee is ₹ 670/= per Cubic Meter. 2.2 On the Interpretation of Statutory provisions they have stated that, with reference to the classification of the services provided, the predominant characteristic of the work is Solid Waste Management and they are of the view that the services rendered by them fall under SAC Code No: 9994 Sewage and Waste collection, treatment and disposal and other environmental pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cified under Section 51(1) as per Notification No. 50/2017-Central Tax dated 13/09/2018 has to deduct tax at source on taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees. In the instant case, M/s. Erode City Municipal Corporation falls within the above notification as specified persons. However, as stated in the preceding submissions, the services rendered by them is exempted from payment of GST as per Sl. No. 3 of Notification No: 12/2017-Central Rate dated 28/06/2017. Hence no amount needs to be deducted as per the provisions of Section 51 of Act, ibid. 3.1 Due to the prevailing PANDEMIC situation and in order not to delay the proceedings, the appellant was addressed through the Email Address mentioned in the application to seek their willingness to participate in a virtual Personal Hearing in Digital media vide e-mail. The applicant consented and the hearing for admission of the application was held on 20.08.2020. S/Shri. Nagesh Prabhu, Director of the applicant company and B.Venkateswaran, Authorized Representative for applicants participated in the virtual personal hearing. They furnished a w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arates the two main aggregates - combustible fraction and inert fraction Zigma takes responsibility of disposal of all aggregates as per SWM Rules 2016 Zigma raises monthly bills to the ULB based on the weight/ volume of the waste cleared from the landfill Zigma reclaims land till the ground level (waste available upto ground level) o If required, ULB can ask Zigma to clear any waste available below the ground level for complete remediation After complete reclamation/remediation, zigma decommissions the plant and machinery from the site Zigma hands over the reclaimed land back to the ULB 3.4 With reference to question no. 3 raised by them, during the Virtual Hearing it was informed that the issue raised therein, was outside the purview of Advance ruling and they had agreed to drop it, however, they requested to reconsider the issue for the following reasons: The Advance Ruling authority is governed by the provisions of Chapter XVII of CGST ACT the relevant Sections 95 to 98, 102, 103, 104 and 105. As per Section 95, the term advance ruling means a decision provided by this authority to the applicant on matters or questions specified in Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. 5. The State jurisdictional authority has not furnished any comments and it is construed that there are no proceedings pending on the issue raised by the applicant. 6. We have carefully examined the statement of facts, supporting documents filed by the Applicant along with application, oral submissions made at the time of Virtual hearing and the comments of the Jurisdictional Authority. The applicant has been awarded the work of Revamping of Existing Dumped Garbage in Vendipalayam and Vairapalayam compost Yards by Bio-mining Process under the Design, Build, Own and Operate concept. The applicant is before us seeking ruling on the following questions: 1. Classification of the services viz Solid waste management - Revamping of existing dumped Garbage in compost yards by Bio -mining process provided by the applicant to M/s. Erode City Municipal Corporation, Erode? 2. Whether aforesaid services provided by the applicant are exempted under SIC No. 3 of notifications No. 12/2017 dt: 28.06.2017 as amended? 3. Whether the Erode city Municipal Corporation is liable to deduct TDS as per the provisions of section 51 of CGST Act of TNGST Act, 2017 for the services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates and dispose all aggregates on their own account as per SWM Rules 2016. The applicant has to recover the land of all the wastes and hand over to the Erode Municipality Corporation and the period of agreement is 24 months. The dumpsite is handed over to the applicant by the corporation as per Para 10 of the agreement with the right to use the site for the agreed purpose, i.e., disposal of the dumped MSW. The applicant is compensated based on the tonnage of waste disposed. The applicant raise invoice based on the weight/volume of the waste cleared from the landfill. They have furnished copies of Invoice raised by them on Erode City Municipal Corporation. On perusal of Invoice No. VAP\19-20\0042 dated 31-Mar-20, it is seen that the invoice is raised for the Quantity handled and is stated GST NIL as per Notification No. 12/2017-Central Tax(Rate) dated 28.06.2019 under Chapter 99 . Thus, the applicant undertakes processing of waste and disposal of the same and the reclaimed land free of the dumped waste is returned to the Corporation. In other words, the activity undertaken is treatment disposal of waste dumped at the yard as per the SWM Rules 2016 and reclaiming of the land us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -up services 644 999442 Containment, control and monitoring services and other site remediation services 645 999443 Building remediation services 646 999449 Other remediation services nowhere else classified 647 Group 99945 Sanitation and similar services 648 999451 Sweeping and snow removal services 649 999459 Other sanitation services nowhere else classified 650 Group 99949 Others 651 999490 Other environmental protection services nowhere else classified From the above, it is seen that SAC 9994 covers Sewage and waste collection, treatment a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing etc. ii. disposal of non-hazardous waste on or in landfills other than a sanitary one iii. incineration of non-hazardous waste in a facility that meets legal standard and requirements for incineration of non-hazardous waste iv. other non-hazardous waste disposal services, such as: a. services of chemical or biological reduction of agricultural waste and similar treatment services It is seen that the activities undertaken by the applicant such as consolidation of waste, temporary storage of hazardous non-hazardous waste; treating and disposing the waste by processing in a facility that meets legal standards, are all covered under the group 99943. The ultimate goal of the activity is reclamation of land clear of the dump and the activity undertaken by the applicant is removal of the waste following the norms set under SWM Rules 2016. Therefore, we hold that the activity undertaken by the applicant is covered under SAC 9994 and more appropriately under the Group 99943. 8.1 The Second question for which the ruling is sought is whether the services provided by the applicant are exempted under Sl. No. 3 of notifications No. 12/2017 dt: 28.06.2017 as amend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t (by whatever name called) for a transitional area, that is to say, an area in transition from a rural area to an urban area; (b) a Municipal Council for a smaller urban area; and (c) a Municipal Corporation for a larger urban area, in accordance with the provisions of this Part: The Erode City Municipal Corporation was formed as per the Erode City Municipal Corporation Act 2008 by the Government of Tamil Nadu. The service recipient i.e., Erode City Municipal Corporation, Erode, Tamil Nadu is a local authority. As per Section 2 clause (69) sub-clause (b) of the CGST Act, 2017 Municipality as defined in clause (e) of article 243P the Constitution is a local authority, hence the services are provided to Local Authority and the criterion related to recipient is satisfied. 8.2.3 The next criterion to be verified is whether the activity is a function entrusted to a municipality under Article 243W of the Constitution. Sl.No.6 of The Twelfth Schedule to the Constitution under Article 243 W is as follows: 6. Public health, sanitation conservancy and solid waste management. Further, as per the Solid Waste Management Rules 2016, the Duties of Local Authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the services received by them from the applicant, the said question is not raised on their behalf and the applicant acceded to it during the hearing. However, they have requested re-consideration on the admissibility of the said question in their written submissions dated 29.08.2020 wherein, they have stated that The question raised is covered under Section 97(b) of the Act-applicability of a notification under the provisions of this Act The Advance Ruling Authority of the State of West Bengal has answered similar questions in the case of M/s. MAHENDRA ROY, AUTHORITY FOR ADVANCE RULING (WEST BENGAL) Case No: 35 of 2019 dated 13/08/2019 = 2019 (9) TMI 1048 - AUTHORITY FOR ADVANCE RULING, WEST BENGAL ; Indrajit Singh, carrying on business under the trade name M/s. Maruti Enterprise (Case No: 18 of 2019 dated 29/04/2019) = 2019 (6) TMI 486 - AUTHORITY FOR ADVANCE RULING, WEST BENGAL ; Time Tech Waste Solutions Private Limited (Case No: 20 of 2019 dated 06/05/2019 = 2019 (6) TMI 1339 - AUTHORITY FOR ADVANCE RULING, WEST BENGAL and Singh Transport (Case No: 37 of 2019 dated 22/08/2019 = 2019 (10) TMI 1139 - AUTHORITY FOR ADVANCE RULING, WEST BENGAL 9.2 The co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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