9911796707
TMI Blog2019 (10) TMI 1390X X X X Extracts X X X X X X X X Extracts X X X X ..... poration Act, 1962 which is an Act of Parliament. But the definition also provides for 90% or more participation by way of equity or control of the respective Governments. It means that if the Authority or Board or any other body is established by an Act of Parliament, the Union Government must have 90% or more participation by way of equity or control. The condition applies to a State Government if such body is established by a State Legislature. In this case, admittedly the equity share of Central Government is 55.02%. Therefore, the condition of 90% or more participation by way of equity is not fulfilled. Further, the applicant has submitted that as per Section 20 of the Warehousing Corporation Act 1962, five directors are nominated b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 11-10-2019 - SANGEETA KARMAKAR AND MADUBALA, MEMBER Present for the Applicant : Sh. B.K Nohria (C.A), Sh. N.K Nohria (C.A), Sh. Manoj Kumar (C.A) and Sh. Vimlesh Kumar (Account Assistant) 1. Brief submission of the applicant: 1.1 The Applicant is incorporated under Section 18 of the Warehousing Corporations Act, 1962, which is an Act of Parliament. At present the equity of the Applicant is held equally by the Government of Haryana and Central Warehousing Corporation, which is established under Section 3 of the Warehousing Corporations Act, 1962. 1.2 The 100% of equity and control of the Central Warehousing Corporation lies with the Government of India. However he later clarified, vide his letter dated 10.10.2019 that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aryana Warehousing Corporation is a 'Government Entity' or not, it is necessary to deeply examine and interpret the definition of 'Government Entity' as contained in Para 2 (zfa) in Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 32/2017- Central Tax (Rate) dated 13.10.2017. It reads: Government Entity means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government, with 90% or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority. 3.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment, the Central Government cannot be said to have more than 90% control. Secondly, even if the cumulative control of Central and State Government is considered, the same falls short of the condition of 90% control as stipulated in the definition discussed above. Reason being, at least one of the five directors nominated by the Central Warehousing Corporation is a non-official and one has to be appointed in consultation with the State Bank which has only 54% share of the Government of India. So, essentially at the maximum, eight out of the ten directors are purely Government nominees. The Managing Director is appointed by the State Government in consultation with the ten directors discussed above. In nutshell, the applicant fails to s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
