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TMI Blog2021 (7) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... animals by way of renting or leasing of vacant land with or without structures is exempted under the entry. Application allowed. - KER/100/2021 - - - Dated:- 25-5-2021 - SHRI. SIVAPRASAD.S, IRS : SHRI. SENIL A.K. RAJAN Authorized Representative : 1. R Krishna Iyer Co., CA 2. Chellanam Grama Panchayat represented by Panchayat Secretary The applicant is a Local Self Government Institution and is engaged among other activities in leasing of wet land for fish farming. The applicant has allotted some wet land, i.e., water channel (paruthithodu chaal in Chellanam) on lease. The land is used for fish and crab farming. The person who has taken the wet land on auction has to pay the agreed auction amount. 2. At the outset ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arm labour; (iii) process carried out at an agricultural farm; (iv) renting or leasing of agro machinery or vacant land; (v) loading and unloading of agricultural produce; (vi) agricultural extension services and (vii) services by any agricultural produce marketing committee. Therefore, the conditions to be satisfied for exemption under the said entry is that the activity carried out should be cultivation or rearing of animals or agricultural produce and the services provided shall conform to any of the descriptions enumerated therein. The conditions to be satisfied for grant of exemption are (a) activity carried should be cultivation or rearing; (b) Cultivation or rearing should be of agricultu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , trees, grass, herbage, other natural or perennial products, growing crops or trees, mineral under the surface, or by hand of man, buildings, fixtures, fences, bridges as well as works constructed for use of water, such as dikes, canals etc. It is thus clear that canals also fall within the meaning of the term land . The word 'chaal' used in Malayalam is synonymous with canal and forms part of land mass (in this case of paruthithodu chaal) and land referred at SI.No.54 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 therefore includes canals. Thus, all the conditions stipulated in SI No.54 of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 is satisfied and the lease of vacant land for fish farming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y reveal the legislative intention to include fish also, since they are aquatic animals. In the circumstance the lease rent charged by Municipality / Panchayath for land i.e; water channel used for Fish farming falls within the meaning of service relating to rearing of all life forms of animals - by way of renting or leasing of vacant land is eligible for GST exemption as per SI.No.54 of Notification No.12/2017 Central Tax (Rate) dated 28.06.2017 and corresponding notification under Kerala GST. 6. Personal Hearing: The applicant was granted opportunity for personal hearing on 05.01.2021. The Panchayat Secretary represented the applicant. He reiterated the contentions made in the application and requested to issue ruling on the bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommission agent for sale or purchase of agricultural produce; (h) services by way of fumigation in a warehouse of agricultural produce. - Nil 7.2. On a plain reading of the above entry, it is evident that the services relating to cultivation of plants and rearing of all life forms of animals by wav of renting or leasing of vacant land with or without structures is exempted under the entry . The conditions to be satisfied are; (1) vacant land with or without structures is provided; (2) the land should be provided on lease or rent; and (3) the activity for which the land is provided should be cultivation of plants or rearing of animals. In the instant case the applicant is providing water channel (paruthithodu chaa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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