9911796707
TMI Blog2021 (1) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted a copy of the said tender. 2. The applicant has submitted that they participated in the bidding process for the said tender for providing the said services to Notified Area Authority, Vapi for 05 years. The Applicant was granted this tender vide letter dated 22.01.2019 for providing the said services to Notified Area Authority, Vapi for an amount of Rs. 1,71,10,000/- for a period of 05 years(copy submitted); that consequently an agreement was entered into between the applicant and Notified Area Authority, Vapi on 04.02.2019 and under this agreement, the applicant has to provide services for collection, sorting, recovery of solid waste and establish/set up Material Recovery facility for sustainable waste management in Vapi Notified Area on DBFOOM (Design, Build, Finance, Own, Operate & Maintain) model for five years; that the applicant has to provide door to door collection of waste in Notified Area Authority, Vapi area, segregation and transportation thereof to Material Recovery Facility and thereafter the applicant has to convert such waste into compost at Material Recovery Facility established by it; that not only the waste collected by the applicant but also the recy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government entity by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution." (ii) The applicant have submitted that they satisfy all the 3 conditions of the said exemption notification as under: 1. The waste management services include door to door collection of garbage/waste, sorting and recovery of waste which is pure service as there is no supply of goods involved in this activity, that setting up of material recovery facility and Food Compost Facility operation and maintenance does not involve any transfer in goods and these are not the activities for which consideration is given by Notified Area Authority, Vapi to the applicant and therefore, as per the agreement, the activities undertaken by the applicant are pure services. 2. The applicant submits that the services provided by them are in the nature of services which are required to be provided by the municipality unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... industrial area of GIDC, Vapi like infrastructure development, improvement of roads, Fire safety services, water supply, street lighting, night patrolling, cleaning services, door to door garbage collection, public health measures, Birth and Death registration and such other services. Therefore it is a Local Authority in terms of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017. The applicant further states that even if Notified Area Authority, Vapi is not considered as Local Authority, it is Governmental Authority as defined vide Notification No.32/2017-Central Tax(Rate) dated 13.10.2017 which reads as: An authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90 per cent. or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution. They have stated the Notified Area Authority, Vapi is constituted under Section 16 of the Gujarat Industrial Development Act, 1962 and is therefore a Governmental Authority set up by an Act of State Legis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the same: i. The Income tax Officer, Surat v/s. Sachin Notified Area, ITA No.1315/ahd/2007, Income Tax Appellate Tribunal, Ahmedabad. In this case, the assessee is a notified area in Surat for the Industrial development. The assessee claimed that it is a local authority notified by the State Government under the Gujarat Industrial Development Act, 1962,(GIDA). Therefore, it filed its income tax return NIL claiming exemption under section 10(20) of the Income Tax. However, the assessing officer was of the view that the assessee is not a local authority and it is not a Municipality as defined under section 10(20) of the Act. The Honorable Tribunal has held that the State Government can create by Notification in official gazette, a notified area and provisions of Gujarat Municipalities Act would be applicable to such notified areas under Section 246B of Municipalities Act and notified areas declared under Section 16 of GIDA would be treated at par as there is no conflict between the two provisions. It is further held that the Municipalities Act is applicable to all classes of urban area either Nagar Panchayat, Municipal Council or Municipal Corporation. The jurisdiction of N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Development (Notified Area) Rules, 2007 notified under GHU-8/2008-GID: 102004: 1496: G: issued in exercise of powers conferred by Section 53 read with Sections 16 and 16A of the Gujarat Industrial Development Act, 1962. 8. The applicant has further submitted that without prejudice to the above submissions, if it is not considered a local authority, it has to be considered as Governmental Authority because NAA, Vapi is set up by an Act of State Legislature i.e. Gujarat Industrial Development Act; that in case NAA, Vapi is considered as a Governmental Authority, the condition of 90% or more participation by way of equity or control to carry out any function entrusted to a Panchayat under Article 243G of the Constitution, as prescribed in Notification No.12/2017-CT(Rate)(supra), shall be applicable only to sub-clause(ii) of the said definition; that in other words, NAA, Vapi if considered as Governmental Authority, it shall be covered under cub-clause (i) of the definition 2(zf) and therefore, the said condition shall not be applicable to it; that they rely upon ruling given in case of NHPC limited, 2018(19) GSTL 349 (AAR-GST) wherein it is ruled that condition of 90% or more part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reads as under: Sr.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Service Rate (percent) Condition (1) (2) (3) (4) (5) 32. Heading 9994 Sewage and waste collection, treatment and disposal and other environmental protection services. 9 -- 12. Thereafter, we are required to refer to Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 (as amended by Notification No.02/2018-Central Tax(Rate) dated 25.01.2018) referred to by the applicant which contains a list of exempted services. Entry No.3 of the said notification reads as under: Sr.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Service Rate (percent) Condi- tion (1) (2) (3) (4) (5) 3. Chapter 99 Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government entity by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etailed Specification and terms and conditions" of the agreement which raise a question mark over the contention of the applicant that they are supplying/providing pure services. The same are as under: (a) Clause in Para-1 of Item 1 falling under the head 'Nature of Work' of the agreement reads as under: "Collection of garbage(dry and wet) from Point to Point and disposed off at MSW site and cleaning of dustbins in area every day. This work is inclusive of supply of workers and Collection Vehicles(over all notified area inclusive all Industrial Zone) per day with all tools and plants like brooms, masks, aprons, hand gloves, gumboots, rain coats in monsoon period etc. to all workers. All garbage are to be collected thoroughly day to day as directed by SW engineer in charge from all residential area, bungalows, all societies, all commercial complexes and industrial area day to day. This work includes all cost of collection vehicle, fuel, oil, workers, licensed driver etc. including spreading of pesticides in Housing and commercial area as and when required/directed. The work also includes Removal and Disposed of dead animals/creatures/insects from respected area including whole G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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