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TMI Blog2021 (4) TMI 881X X X X Extracts X X X X X X X X Extracts X X X X ..... a 'Pure Service', the same is not covered by the Description of Service at SI.No.3 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017. As the primary condition, that the supply must be 'Pure Service' is not satisfied, further conditions are not examined and it is held that the exemption at SI.No.3 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 as amended is not available for the applicant. - TN/09/ARA/2021 - - - Dated:- 30-3-2021 - THIRU. SENTHILVELAVAN B., I.R.S AND THIRU KURINJISELVAAN V.S., M.SC., (AGRI.), M.B.A., MEMBER Note: Any appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 12/2017-CT (rate) dated 28.06.2017 for the service provided is the issue on which advance ruling is sought by them. They have submitted that the government as empowered under Section 11 of the CGST Act 2017, exempts supply of services vide Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 as amended from time to time and one of such exemptions is provided to pure services provided to the Central Government, State Government or Union Territory or Local Authority or a Governmental Authority at SI.No.3 of the said Notification. It is pertinent to note that the term 'Pure Service' is not defined under the GST law and hence the general definition of term pure service has been taken into account for this purpose. As per general definition 'pure service' means any supply for consideration in which no transfer of property in goods is involved during the provision of service, hence if a person provides only service to any person for a consideration without involvement of transfer of property in goods then the said supply of service can be termed as supply of 'Pure service'. From the above, it could be seen that only supply of services for a considerati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the above discussion, it could be seen that any service provided to the Municipal Corporation is a service provided to the local authority and in the present case the service recipient being the Greater Chennai Corporation which is a Municipal Corporation for Chennai city being a local authority, the first condition mandated in the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 where the said pure services have to provide to the Central Government or State Government or local authority or a Governmental authority or a Government Entity is satisfied. As per Article 243W and Twelfth Schedule of the Constitution of India, 1949 the following functions are entrusted to a municipality under Article 243W;- 243W. Powers, authority and responsibilities of Municipalities, etc .- Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow,- (a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uation 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. The applicant consented and the hearing was held on 10.12.2020. The authorised representative participated in the hearing virtually and reiterated the submissions made. The applicant was asked to furnish the agreement copy entered with GCC, copies of invoice/M-Book, write up on Amma Water Scheme' with specifics to the supply made by the applicant. 3.2 The applicant furnished the following on 14.12.2020:- Hon'ble CM's Press Statement dated 13.02.2016 about the launch of Amma Kudineer Thittam Resolution of the Chennai Corporation in this regard dated 25.02.2016 Sample agreement copies with Corporation of Chennai Extracts from the Measurement book On going through the above, it was seen that the applicant has not furnished the agreement copy as required and therefore was addressed to furnish the same. The applicant furnished a copy of complete set of Tender Documents. They also clarified that they are provided with the ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and pronouncement of ruling. 7.1 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 entered into an agreement with GCC, for supply of purified water to the beneficiaries identified by the Greater Chennai Corporation. The applicant has been awarded the contract for supply, installation, commission, Operation Maintenance of the Reverse Osmosis Plant and supply purified water as per the tender condition in 3 out of the initial 20 places identified for implementation of the amma Kudineer Thittam . The applicant has installed and commissioned the RO plant as per the agreement and are undertaking the Operation Maintenance of the same. They have sought ruling on the following question:- Whether the Services provided by the applicant to the recipient i.e. The Greater Chennai Corporation is a pure service provided to the local authority by way of activity in relation to functions entrusted to a Panchayat under article 243G and Municipality under article 243W of the Constitution and eligibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GCC server vendor has to integrate this url services with his software for storing the data in GCC server. terms of payment of contract price- the contract is for a period of 5 years; Payment for supply, installation, commissioning of RO treated drinking water plant will be For Plant - 80% of quoted price for supply, installation after commissioning of the plant; 20% of quoted price for supply and installation after satisfactory commissioning of the plant upon submission of Bank guarantee which shall be valid until three months after satisfactory completion of O M period of the contractor and handing back the plant in good working condition For O M- will be based on sale of water on Volumetric basis for variable cost and at fixed basis for labour cost based on the least rates arrived as per the rate contract,- Insurance - Comprehensive Insurance policy covering all risks for the value of the plant, chemicals, consumables and stores in the name of GCC for a period up to the completion of O M Contract Contract Period - The contract period for supply, installation and commissioning is 45 days. The O M Contract will hold good for 5 years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plant with an operator and supply purified water, Smart cards facilitating the beneficiaries to draw the allotted quantity of water, maintain the RO Plant, vending machines, provide security, etc. 8.1 Having seen the factual matrix of the case, the si.No.3 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017, the benefit of which is claimed by the applicant is examined as under. The entry is extracted for ease of reference: S.No Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 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 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. Nil Nil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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