9911796707
TMI Blog2021 (9) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... oviding the service? - HELD THAT:- It is very clear that the project is executed by the 'Consultant', which is JV GITEC-NK Buildcon- Mukesh Associates. The applicant in his individual capacity is different from the JV, in which he is a member. The 'project' is awarded to the JV and not to the applicant. It is found that it is the Joint Venture with the Registered seat of the Association at Cologne, Germany is the 'Person' to whom the 'Project' is awarded and not the applicant. As per existing laws of the land, a Joint Venture Company, which is formed by 2 or more entities have a separate existence than that of the said entities. Further, as per the Joint Venture Declaration, it is seen that the Lead Member of the JV is the sole representative of the JV and any restrictions to the Power of attorney extended by the participating Members shall be invalid. Therefore supply of goods or services or both, being undertaken or proposed to be undertaken in respect of the 'Project' will be by the Joint Venture Company, and not the applicant. Thus the person who can make such application is the Joint Venture Company only and not the applicant, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpanying Measures for implementation of Integrated Strom Water Drain for M1 M2 components of Kovalam Basin in the extended area of Greater Chennai corporation. They are one among the four recipients of the said letter of acceptance and they provide the Consulting Service to the Greater Chennai Corporation in Joint Venture with M/s GITECH-IGIP, GmbH, cologne, Germany and payments will be made to them (Service Provider) directly by Greater Chennai Corporation (Client). 2.2 On the interpretation of law, they have referred Sl. No. 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017, 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 of the Constitution . As per Article 243W of the Constitution, the Legislature of a State may, by law, endow the performance of functions and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as held on 12.03.2021 virtually. The Authorized representative appeared for the hearing virtually and stated that they undertake only pure services and for the work allotted to them by Greater Chennai Corporation (GCC) and they are eligible for exemption under Notification 12/2017 CT(R). He stated that their service is towards provision of Design Services for Storm Water Drain which is an urban amenity as per the Tamil Nadu Town Planning Act, 1972. They were asked to furnish the documents shared during the hearing. They were also asked to furnish the copy of agreement, copy of invoices raised and a synopsis on their duties and payment with the reference to the contract, when the contract is between GCC and the unincorporated Joint Ventures comprising of the applicant. The applicant was asked to establish the capacity in which the ruling is sought whether JV Member or in his individual capacity. 3.2 The applicant has clarified the following clarifications in pursuance of the personal hearing proceedings. 1. Whether Mukesh Associates are providing direct services to the Greater Chennai Corporation (GCC): Mukesh Associates are providing direct services to the Greater C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Notification No.12/2017. They further stated that their invoices are directly paid to them by the Greater Chennai Corporation. 3.5 In order to adhere to the Principle of Natural Justice, the applicant was afforded another opportunity of personal hearing through virtual mode before the newly constituted bench with their consent. The virtual personal hearing was conducted on 04.08.2021. Mr. Mukesh, managing partner attended the hearing and he was asked to clarify whether ruling is sought in their individual capacity of the consortium (JV) or on behalf of the consortium (as a Joint venture member). He replied that they seek ruling in their individual capacity only. The applicant was asked to furnish a write up indicating their role in detail and cross referencing the terms of the contract. 3.6 The applicant vide his letter dated 04.08.2021 clarified the queries put before them at the time of virtual personal hearing on 04.08.2021. Whether the advance ruling for exemption of GST is requested for Mukesh Associates only are for all the consortium members: This request for advance ruling for exemption of GST is requested for Mukesh Associates only. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s provided by the applicant is pure services. 5. The Center Jurisdictional Authority vide letter File No. TECHN/Misc/72/2021-TECH-0/o COMMR-CGST-SALEM dated .03.2021 stated that there are no pending proceedings in respect of the applicant on the issue raised by them in the application and have submitted that the applicant may be eligible for exemption from payment of GST as per Sl.No. 3 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017. 6. We have carefully examined the statement of facts, supporting documents filed by the Applicant along with application, submissions made at the time of Virtual hearing and the comments of the Jurisdictional Authorities. The applicant has stated to be providing Consulting services for the Project Programme Management and Accompanying Measures for the Chennai Storm Water Drainage, M1 and M2 Components of Kovalam Basin (BMZ-no.2014.680.99, 2017.704.37) (hereinafter called the Services ) to Greater Chennai Corporation (GCC), Government of Tamil Nadu. They have sought Advance Ruling on the following questions: Whether the pure services provided by M/s Mukesh Associates, by way of rendering Consulting Service for Programme Managemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tant to deliver the Services in full and on time; the services to be performed encompasses all the part services described and explained in the Contract and its Annexes, in particular in Annex 2, Annex 3 and Annex 9 and Special Services as defined in Paragraph 3.2.1 o Annex 2 is the Minutes of the Meeting held on 08.04.2020,26.05.2020,01.06.2020,02.06.2020,05.06.2020,10.07.2020 Subsequent correspondence dated 14.07.2020, 29.07.2020 and 03.08.2020 signed between the lead partner and the Commissioner of GCC o Annexure 3 is the Terms of Reference plus Tender Documents o Annex 9 is the Consultant's Bid signed by the Managing Director GITEC-IGIP and Authorised representative of the Applicant (in respect of the Bid), submitted to the Tender agent of GCC; M/s. Mukesh Associates has authorized the Managing Director, GITEC-IGIP GmbH to act on behalf of the unincorporated JV GITEC-NK Buildcon-Mukesh Associates as authorized representative for the proposal and to formally sign /initial any document related to the project vide their letter dated 10.01.2020 From the above it is evident that the JV GITEC-NK Buildcon-Mukesh 86 Associates is the 'Consultant' to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
