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TMI Blog2021 (1) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... g/supplying Temporary live videography with LED & LCD Screen, Live Telecast equipment, Cameras, etc.. They have enclosed specimen Work Orders viz. (a) Work Order No. AB/TC/1082 dated 26.04.2017 issued by Office of the Executive Engineer, Baroda Electrical Division, R & B Department, Vadodara and (b) Work Order No. Duda/Vasi dated 28.08.2018 issued by the Collector, Bharuch. 4. The applicant submitted that the illustrative supply of services which constitute hire charges for a consideration, inter-alia, include: (a) Hire Charges for erecting and dismantling of TV with necessary suitable cables as provided on site as per the requirement on Site and as per the direction of Engineer-in-Charge; (b) LED Screen with suitable Iron Platform Structure, back support of Iron H Frames and wiring etc., complete 16 mega pixel Outdoor Screen with a refresh rate of 4800 MHZ or so as per requirement of on Site and as per the direction of Engineer-in-Charge; (c) Hire Charges, for providing, erecting and dismantling of DTH system, having enough size Disc for receiving Digital Signal and Set Top Box, as required for program, with good quality interconnecting wires & necessary recharge (Tata Sky, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be, in respect of aforesaid question(s): 9. The applicant, vide their letter dated 23.01.2019, submitted that as per clause No. 5(f) of the Schedule-II to the CGST Act, 2017, transfer of the right to use any goods, for any purpose (whether or not for a specified period), for cash, deferred payment or other valuable consideration, shall be treated as 'Supply of services'. The services supplied by the applicant, being in the nature of transfer of the right to use any goods for any purpose, for a specified period, fall under the aforesaid clause. 10. The applicant further submitted that they supply the services, viz. Transfer of right to use any goods, for any purpose, for a specified period, to Central Govt., State Govt. or Union Territory or Local Authority or a Governmental Authority, which covered under Sr. No. 3 of the Notification No.12/2017-CT (Rate) dated 28.06.2017. 11. The applicant further submitted that from the List of activities specified under Twelfth Schedule (Article 243-W of the Constitution) and under Eleventh Schedule (Article 243-G of the Constitution), it is evident that "Promotion of Cultural, Educational and Aesthetic Aspects" is one of the Functions, specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the notification No. 12/2017- CGST (Rate) which is to be decided keeping in mind the facts and evidence produced herein. [iii] The work order issued by the State Government clearly provides that the scope of their work is only supply of services and no goods are supplied to the state government. The Applicant have already submitted the scope of their services by its submission dated 23.01.2019 but as a matter of repetition, reiterate as under: (A) The Applicant have been given a work order for providing services to the State Government for live videography of the event of Chief Minister or other ministers and have to erect and dismantle TV sets. The applicant has to lay necessary suitable Cables as per direction of Engineer in Charge on temporary basis at the site. (B) The Applicant have to install LED screens at the venue on Iron Platform structure, back support of Iron H Frames and Wiring etc., with 16 Mega Pixel camera so 4 that large group of people can see the event even seating at distant places at the same venue. (C) That the Applicant have to run DTH System with enough size disc for proper Digital Signal and Set TOP Box as per requirement compatible to Tata Sky, D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243 G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil [viii] In view of the above referred entry, it is clear that this Notification is application to the service provider, who only provides services and not Undertaking any works contract or other composite supplies involving supply of any goods. The applicant has produced enough material to show that they have provided only services and therefore, applicant is eligible for the benefit of Sr. No. 3 mentioned above. [ix] It is also established that the applicant has provided services to Government of Gujarat or its bodies and, therefore, the applicant is covered under the second limb of Sr. No. 3 that the pure service should be provided to the Central Government, State Government or Union territory or local authority or a Governmental authority. The work order made it very clear that the applicant have provided services to the Government only and, therefore, the applicant has s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an order dated 28.08.2018, whereby it is specifically mentioned that in view of the Sr. No. 3 of the Notification, no GST is payable and, therefore, the payment was made to the applicant without deducting GST amount. However, this also clarifies the situation that the applicant is not liable to pay any GST on the activities mentioned in the work order. A copy of the order dated 28.08.2018 is annexed herewith and marked as ANNEXURE-C hereto; [xiv] That this issue is otherwise held in favour of the trade by the different AAR in the case of City and Industrial Development Corporation of Maharashtra Ltd. reported in 2019 (26) GSTL 394 (AAR-GST) = 2019 (6) TMI 1009 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA & in the case of Sri Roopesh Kumar reported in 2019 (10) TMI 944 - AAR, Karnataka. Both the benches allowed the benefit of the Notification No. 12/2017- Central Tax. The issue involved in both the above referred cases are similar to the applicant's and, therefore, benefit of Notification No.12/2017-Central Tax should be available to the applicant also. DISCUSSION & FINDINGS: 15 We have considered the submissions made by the applicant in their application for advance ruling as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ostel Ground, Bharuch 259242 Office of the Executive Engineer, Baroda Electric Division, R&B Department, Vadodara 5 24.04.2018 Providing Temporary Live Videography with LED Screen, for "Sujalam Suflam Jal Yojna" (Lake side) for State level Celebration of "Gujarat Gaurav Din" by Hon'ble CM at Kosambli, Ankleshwar 542389 Office of the Executive Engineer, Baroda Electric Division, R&B Department, Vadodara 6 24.04.2018 Providing Temporary LED Screen with Videography, for Main Dome, for State level Celebration of "Gujarat Gaurav Din" by Hon'ble CM at Kosamdli, Ankleshwar 808470 Office of the Executive Engineer, Baroda Electric Division, R&B Department, Vadodara 7 19.05.2018 Providing Temporary Live Videography with LED Screen, for "Sujalam Suflam Jal Abhiyan 2018" by Hon'ble CM at Nani Saran, Tal.-Santrampur, Dist.Mahisagar on 22.05.2018 326798 Office of the Executive Engineer, Baroda Electric Division, R&B Department, Vadodara 8 16.05.2018 Providing Temporary Live Videography with LED Screen, for "SujalamSuflam Jal Abhiyan 2018" by Hon'ble CM at Kanthagar, Tal-Fatepura, Dist.-Bharuch on 19.05.2018 326798 Office of the Executive Engine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o undertaken activities in relation to any function entrusted under Article-243G and Article- 243W of the Constitution. Further, they have never provided services to other than the Government. 17. In backdrops of above facts, the applicant has sought the Advance Ruling on the following questions: (i) Whether or not, the aforesaid services fall under the scope of clause 5 (f) of the Schedule II to the Central Goods and Service Tax Act, 2017? (ii) Whether or not, the Service related to collection of Hire Charges for temporary transfer of right to use goods, from "Central Govt., State Govt. or Union Territory or Local Authority or a Government Authority by way of any activity in relation to any Function entrusted to a Panchayat under Article 243-G of the Constitution or in relation to any function entrusted to a Municipality under Article 243-W of the Constitution" are covered and exempted under the scope of Sr. No. 3 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017? 18. Now, we take up the first issue for ruling, as to whether services provided by the applicant would fall under the scope of clause 5 (f) of the Schedule II to the Central Goods and Service Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he recovers consideration for the same as hiring charges from them. Thus, said services are to be construed as supply of services/ goods/ works contract depending upon the nature of contract entered by them or Work Order received by them. 21. In view of the above, we hold that the services provided by the applicant would not fall under the scope of clause 5 (f) of the Schedule II to the Central Goods and Service Tax Act, 2017. 22. The next question is to be decided, whether or not, the Service related to collection of Hire Charges for temporary transfer of right to use goods from "Central Govt., State Govt. or Union Territory or Local Authority or a Government Authority by way of any activity in relation to any Function entrusted to a Panchayat under Article 243-G of the Constitution or in relation to any function entrusted to a Municipality under Article 243-W of the Constitution" are covered and exempted under the scope of Sr. No. 3 of the Notification No.12/2017Central Tax (Rate) dated 28.06.2017? 23. For better appreciation of the issue, Entry at Sr. No. 3 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, is reproduced herein below: Sr.No. Chapter, Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h can establish or conclude that the work orders do not involve supply of goods. As such, these work order do not satisfy the first condition of "pure service". 24.2 The second condition to be verified is as to whether the entities mentioned at para 16.1 above are "Central Government" or "State Government" or "Local authority" or "Governmental authority" or "Government Entity". For better appreciation, definitions of the above terms as provided under the CGST Act, 2017 are reproduced herein below: (i) As per Section-2(53) of the CGST, Act, 2017, "Government" means the Central Government. (ii) As per Section-2(53) of the Gujarat GST, Act, 2017, "Government" means the State Government. (iii) "local authority" means-- (a) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.3 The third condition to be verified is whether the services provided to these entities mentioned above, are services provided by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution of India or in relation to any function entrusted to a Municipality under Article 243W of the Constitution of India. 24.3.1 For better appreciation, the functions entrusted to the panchayats under Article 243G of the Constitution of India are reproduced herein below: 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor irrigation, water management and watershed development. 4. Animal husbandry, dairying and poultry. 5. Fisheries. 6. Social forestry and farm forestry. 7. Minor forest produce. 8. Small scale industries, including food processing industries. 9. Khadi, village and cottage industries. 10. Rural housing. 11. Drinking water. 12. Fuel and fodder. 13. Roads, culverts, bridges, ferries, waterways and other means of communication. 14. Rural electrification, including distribution of electricity. 15. Non-con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Municipality under Article 243W of the Constitution of India. Since the applicant, at various stages, enters into different agreements with various authorities for provision of services, it is not practical to examine at this stage, each contract, he has entered into with the recipients of services. Further, during the course of providing services, the applicant may also enter into further agreements with the service recipients. It is not possible to foresee the nature of all these agreements at present. Further, there could also be modifications/ amendments in the existing agreements and the nature of service could be subsequently altered. Therefore, the reply to the query raised by the applicant cannot be answered in plain 'no' or 'yes'. Therefore, we hold that the nature of these agreements and the services provided by the applicant would determine whether the third condition as discussed above has been met or otherwise. We hold that applicant shall be eligible for the exemption under the Notification No.12/2017-State Tax (Rate) dated 28.06.2017 only if all the conditions as specified at para 23.1 supra are met in respect of supply of such services. Therefore, the exemption so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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