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TMI Blog2022 (3) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... epartment and not the Irrigation department and the applicant has not brought anything on record to show that the impugned services are provided to MSFR department by way of an activity in relation to any function covered under Article 243G or 243W of The Constitution of India. In view of non-submissions of details on this aspect by the applicant, the second question i.e. Whether exemption under entry No 3. Of Notification No. 12/2017 Central Tax (Rate), dated 28.06.2017 will be applicable on the amount of compensation received by FDCM against transfer of land held under lease for Kolsapada Minor Irrigation Project cannot be answered. - GST-ARA-18/2020-21/B-31 - - - Dated:- 15-3-2022 - SHRI RAJIV MAGOO, AND SHRI T.R. RAMNANI, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-18/2020-21/B-31, Mumbai, dt. 15.03.2022 The present application has been filed under Section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act respectively] by M/s. FORES ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Circular No PLN:66A/Part 2/3362 issued by Managing Director FDCM, DE -.02-11-2006. The Kolsapada Minor Irrigation Project, located in Thane District, was initiated by Executive Engineer; Raigad Irrigation for Minor Irrigation Scheme. The Project is administratively approved by Government of Maharashtra, Water Resource Department vide resolution No MIS-2007/78/Ch. N0,46/2007Kharland Dt 18-06-2008 and required diversion of 139,473. Ha land which was partial under the Forest and Revenue Department of Maharashtra and partially under FDCM Ltd. 2.3 A letter dated 29-05-14 from Deputy Conservator of Forest, Thane to Divisional Manager FDCM Ltd, Thane, intimated that an area of 93.076 Hectare was to be diverted for Kholsapada Minor Irrigation project which was given under lease by the Forest and Revenue Department of Maharashtra to FDCM Ltd. The letter also asked FDCM Ltd to determine the amount of compensation to be given against diversion of land and to issue an NOC against such diversion. 2.4 FDCM submitted an NOC towards transfer of land for Kolsapada Minor Irrigation Project on 30-05-14, subject to the payment of valuation of the affected assets, at the time of transfer of lan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 As per Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017, amended by Notification No. 2/2018- Central Tax (Rate) DT 25/01/18, services provided to State, Central Government or local authority or a Governmental Authority by way of an activity in relation to any function covered under Article 243G or 243W of The Constitution of India are exempt from levy of GST. Activities entrusted to a Panchayat specifically covers Minor irrigation, water management and watershed development. Hence any supply of service provided towards Kolsapada Minor irrigation Project under The Irrigation Department of The State of Maharashtra shall be exempted under Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017. 2.8 The land held under lease by FDCM is essential for Kolsapada Minor Irrigation Project and the easement or the right to occupy the land provided by FDCM is for the sole purpose of creation of for minor irrigation Project which is an activity covered under Article 243 G or 243 W of The Constitution of India. 2.9 Such supply of impugned service shall be exempt under the CGST Act under Notification No. 12/2017-CTR, dated 28.06.2017, further amended by Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se which is allocated by Forest Revenue Department of Maharashtra the implementing agency, in this case, the Irrigation Department coordinates with Forest Revenue Department who in turn instructs the applicant to release the lease held land against compensation which is paid by implementing agency. 5.5 The applicant has also stated in its application as under: In light of the above, it is submitted that, since FDCM is transferring the leased land back to Forest Revenue Department of Maharashtra for the sole purpose of diversion of land towards Kolsapada Minor Irrigation Project under The Irrigation Department of Government of Maharashtra, any compensation received by FDCM from Kolsapada Minor Irrigation Project under Irrigation Department can only be attributed to have been against supply of service. 5.6 It is presumed for the purpose of present ruling that the amount is directly received from the Irrigation department of the Government of Maharashtra and not from anyone else, since, in spite of specific request to produce the details as from whom payments are received and proof thereof, no details in support of payments received have been produced. However, sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e such person to another;] (b) import of services for a consideration whether or not in the course or furtherance of business; and (c) the activities specified in Schedule I, made or agreed to be made without a consideration; (d) [*****] (1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.] 5.9.2 Schedule II of the CGST Act, 2017, defines activities or transactions to be treated as supply of goods or supply of services and is reproduced as under:- 1. Transfer (a) ..................................; (b) any transfer of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of services; (c) ................................. 2. Land and Building (a) any lease, tenancy, easement, licence to occupy land is a supply of services; (b) ........................... 3. ....................... 4. Transfer of business assets (a)...................; (b) .................; (c)....................; ..... X X X X Extracts X X X X X X X X Extracts X X X X
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