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TMI Blog2021 (8) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... f an already existing Sports complex at Bopal location as detailed in previous pages. We note the chargeable bookings and their rates, the non refundable nature of bookings too. With the plain reading of the inclusive definition of the word business in CGST Act as reproduced at paragraph 19.1 with the nature of commercial activities in which AUDA is involved as evidenced with the above illustration, with nothing to dissuade us from what is a glaring and clear illustration of activity of AUDA w.r.t. a sports facility already existing, We are of the strong opinion that subject proposed Sports Complex is not predominantly meant for use other than for commerce, industry, or any other business or profession - The Wording in a statute for business and at entry 3(vi)(a) of said Notification, when clear, plain and unambiguous and only one meaning can be inferred, we are bound to give effect to the said meaning.. We give due Regard to the clear meaning of words and matter should be governed wholly by the language of the notification. The explanation to said entry of the Notification wherein the term business shall not include any activity or transaction undertaken by the Central Gover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or in some other form) is involved in the execution of such contract. The government vide Notification No. 11/2017-CT (Rate) dated 28.06.2017 has prescribed the rate of 6% CGST for the services provided by the taxpayer under Entry at Sr. No. 3(vi) of the Not. No. 11/2017-CT (Rate) dated 28.06.2017 which reads as under: (vi) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, other than that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above provided to the Central Government, State Government, Union Territory, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of (a) Civil structure or any other original work meant predominantly for use other than for commerce, industry or any other business or profession; (b) A structure meant predominantly for use as (i) an education (ii) a clinical, or (iii) an art of culture establishment; or (c) A residential complex predominantly meant for self use or the use of their employees or other persons specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and amend the law relating to the making and execution of development plans and town planning schemes in the State of Gujarat. Section 22 sub sections (1) and (2) of the said Act read as under : 22. Declaration of urban development area and constitution of urban development authority. (1) Where the State Government is of the opinion that the object of proper development or redevelopment of any urban area or group of urban areas in the State together with such adjacent areas as may be considered necessary, whether covered under a development area already declared as such under Section 3 or not, will be best served by entrusting the work of development or redevelopment thereof to a special authority, instead of to an area development authority, the State Government may, by notification, declare such area to be an urban development area and constitute an authority for such area to be called the urban development authority of that area, and thereupon all the powers and functions of an area development authority relating to the development or redevelopment of a development area under this Act shall, in relation to such urban development area, be exercised and performed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planning schemes [or local Area Plan] under the provisions of this Act, if so directed by the State Government; [(ii-a) to undertake the preparation and execution of Local Area Plan under the provisions of this Act, if so directed by the State Government;] (iii) to carry out surveys in the urban development area for the preparation of development plans or town planning schemes; (iv) to guide, direct and assist the local authority or authorities and other statutory authorities functioning in the urban development area in matters pertaining to the planning, development and use of urban land; (v) to control the development activities in accordance with the development plan in the urban development area; [(v-a) to levy and collect such security fees for scrutiny of documents submitted to the appropriate authority for permission for development as may be prescribed by regulations;] (vi) to execute works in connection with supply of water, disposal of sewerage and provision of other services and amenities; [(vi-a) to levy and collect such fees for the execution of works referred to in clause (vi) and for provision of other services and amenities as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity under Section 22(4) of the said Act. (3) The Ahmedabad Urban Development Authority is entrusted with the functions of a Municipality/local authority by the Government of Gujarat with respect to the area under the jurisdiction of the AUDA. This is evident on a perusal of Sections 22 and 23(1) of the said Act. Thus, the Ahmedabad Urban Development Authority is a Governmental Authority within the meaning of the term appearing at Entry 3(vi) of Notification Number : 11/2017 Central Tax (Rate) dated : 28.06.2017 and as defined at Para 4(ix) of the said Notification. (4) Regarding the existence or otherwise of the element of business/trade/ commerce/profit vis a vis the said AUDA Sports Complex at Manipur, Ahmedabad: 1. AUDA does not render services to any particular trade, commerce or business. Whatever income is earned/received by AUDA is required to be used only for the purpose to carry out the object and purpose of Town Planning Act and to meet with expenditure while providing general utility service to the public such as electricity, road, drainage, water etc..The entire control of AUDA is that of the State Government. The accounts are subjected to audit and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of buildings, bridges and other structures; (e) The allotment or reservation of (2) land for roads, open spaces, gardens, recreation grounds, schools, markets, green-belts, dairies, transport facilities, public purposes of all kinds; (f) Drainage, inclusive of sewerage, surface or sub-soil drainage and sewage disposal; (g) Lighting; (h) Water supply; (i) The preservation of objects of historical or national interest or natural beauty, and of buildings actually used for religious purposes; (j) The reservation of land to the extent of ten per cent. or such percentage as near thereto as possible of the total area covered under the scheme, for the purpose of providing housing accommodation to the members of socially and economically backward classes of people; 2 [3 [(jj) (a) the allotment of land from the total area covered under the scheme, to the extent of.- (i) Fifteen per cent. for roads, (ii) five per cent. for parks, play grounds, gardens and open space, (iii) five per cent. for social infrastructure such as school, dispensary, fire brigade, public utility place as earmarked in the Draft Town Planning Scheme, and (iv) fif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fund of the authority. (2) The fund of an appropriate authority shall be applied towards meeting- (a) Expenditure incurred in the administration of this Act; (b) Cost of acquisition of land for the purposes of this Act; (c) Expenditure for any development of land in the development area; (d) Expenditure for such other purposes as the State Government may direct. (3) An appropriate authority may keep in current account with the State Bank of India or any other bank approved by the State Government in this behalf, such sums of money out of its fund as may be prescribed and any money in excess of the said sum shall be invested in such manner as may be approved by the State Government. (4) The State Government may, make such grants, advances and loans to an appropriate authority as the State Government may deem necessary for the performance of its functions under this Act and all grants, loans and advances so made shall be made on such terms and conditions as the State Government may determine. Section 95: Accounts And Audit :- (1) An appropriate authority shall maintain proper accounts and other relevant records and prepare an annual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raids; they possess search and seizure powers and are invariably subjected to Parliamentary or legislative oversight. The primary object for setting up such regulatory bodies would be to ensure general public utility. 10. On the basis of the above submission, the applicant is of the opinion that the development of AUDA Sports Complex at Manipur, Ahmedabad by the Ahmedabad Urban Development Authority is meant pre-dominantly for advancement of general public utility and welfare, as per the avowed objectives of AUDA. Attributing or ascribing any commercial, industrial or business/professional motive behind such development, would render the functioning of AUDA ultra vires it s parent Act i.e. The Gujarat Town Planning and Urban Development Act, 1976. Question on which Advance Ruling sought 11.Whether the activity of composite supply of work contract service by way of development and construction of sports complex at Maninagar, Ahmedabad for the Ahmedabad Urban Development Authority, and as detailed in the tender document merit classification at Sr. No. 3(vi)(a) of Notification No. 11/2017-CT (Rate) dated 28.06.2017 (hereinafter referred to as said NT) ? Personal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... like infrastructure, housing, residential commercial development, construction of houses, etc. The Governments setup these authorities under the Town and Planning Act. Examples of such developmental authorities are Delhi Development Authority, Ahmedabad Development Authority, Bangalore Development Authority, Chennai Metropolitan Development Authority, Bihar Industrial Area Development Authority, etc. Such developmental authorities formed under the Town and Planning Act are not qualified as local authorities for the purposes of the GST Acts. 18.1 Government Authority has been defined in Paragraph-4 of the Notification No.11/2017-Central Tax(Rate) dated 28.06.2017[as amended by Notification No.31/2017-Central Tax (Rate), dated 13-10-2017] as follows : (ix) Governmental Authority means 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 243W of the Constitution or to a Panchayat under Article 243G of the Constitution. 18.2 AUDA i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SYSTEM SPORTS COMPLEX @ SOUTH BOPAL Booking Till Date 114 Basketball Booking 119 Volleyball Booking ABOUT US With a staff of only 250 people, AUDA is lean Organization, Planning and Regulating development in an urbanized area of over 150 sq.km. of total area of 1866 sq.km. Ahmedabad Urban Development Authority (AUDA) was established on February 1. 1978 by the Government of Gujarat. The prime objective of the AUDA's formation was to carry out the sustained plan-ned development of the area failing outside the periphery of Ahmedebad Municipal Corporation. BOOK YOUR TIME SLOT Individual/Group Book Now (/Registration.aspx?type=1) Any Individual can book here for availing the Facility. The teams should be brought by themselves. Basketball Volleyball Basketball is a team sport in which two teams, most commonly of five players each, opposingone another on a rectangular court, compete with the primary objective of shooting a basketball through the defender's hoop while preventing the opposing team from shooting through their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny other event for consideration We do not rule out the complex s intended commercial uses. We cannot water down or dilute the inclusive definition of business as defined in CGST Act. We again note that the definition of business as per CGST Act is an inclusive definition and the activities specified are only indicative and not exhaustive. We hold that the wording of the Notification should be strictly interpreted. The Wording in a statute for business and at entry 3(vi)(a) of said Notification, when clear, plain and unambiguous and only one meaning can be inferred, we are bound to give effect to the said meaning.. We give due Regard to the clear meaning of words and matter should be governed wholly by the language of the notification. We note that the explanation to said entry of the Notification wherein the term business shall not include any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities and does not cover Government Authority. We cannot allow any scope for intendment. We find that our view of strict interpretation of the wordings of the said notification is in conson ..... X X X X Extracts X X X X X X X X Extracts X X X X
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