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TMI Blog2022 (4) TMI 1236X X X X Extracts X X X X X X X X Extracts X X X X ..... ard. 2. Under Section 103(1) of the Act, this Advance ruling pronounced by the Appellate Authority under Chapter XVII of the Act shall be binding only (a). On the applicant who had sought it in respect of any matter referred to in subsection (2) of Section 97 for advance ruling; (b). On the concerned officer or the jurisdictional officer in respect of the applicant. 3. Under Section 103 (2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the said advance ruling have changed. 4. Under Section 104(1) of the Act, where the Appellate Authority finds that advance ruling pronounced by it under sub-section (1) of Section 101 has been obtained by the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the appellant as if such advance ruling has never been made. 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 provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent was alignment of the TNSDC's activity with NSDC and therefore ought to be exempt on the same lines. AAR applied the Entries 69 & 70 by the letter and rejected TNSDC's contention. * The executive head of the corporation is its Managing Director who is from the IAS cadre. Its Board of Directors are secretaries of the State Government drawn from various related departments like Finance, Labour, Education etc. All Directors are appointed by the state Government. The Board also has representatives from CII, FICCI and Tamil Nadu Small and Tiny Industries Association. It comes under the supervision of the Ministry of Labour and Employment. * They receive funds from the State Government as a grant. Each grant has a condition attached to it specifying the purpose of the grant and the nature of training to be imparted. The specification of nature of training is generally with reference to industries, like up-skilling of garment workers, automobile mechanics, re-skilling for IT enabled services etc. The funds received from the Government are banked and spent only for the purpose for which it is received. Any excess fund is kept in bank account in accordance with the directions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below: * TNSDC has been granted registration u/s 12AB of the Income Tax Act 1961 from Assessment year 2022-23 to 2026-27. * The Appellant submits that the Hon'ble Authority for Advance Ruling ought to have seen the following facts:- * The appellant is an undertaking incorporated and wholly owned by the Government of Tamil Nadu * They are carrying out the functions entrusted by the State Government and is the nodal agency for Skill Development in Tamil Nadu * They are a Government Entity under GST Law. * The appellant only provided skill development training to the persons specified by the Central and State Governments and they execute the Skill Development programmes as per the orders (GO) of the State or Central Government. * They receive money for spending towards its Skill Development programme only as Government grants and the Appellant as a Government entity provides service to Governments for which consideration is received in the form of grants. * The LA should therefore confirm that their nature of service will fall under entry 9c of Notification 12/2017 and their services are not taxable under GST and therefore no registration is required. NSDC TNSDC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey are a wholly owned PSU of the Government of Tamil Nadu. Their only activity is providing training and up-skilling of persons in accordance with programs and schemes formulated by the State and Central Governments. The funding for the programs are received in the form of Grants. The appellant does not have any revenue vertical other than Government Grants and Interest on Bank accounts. They have submitted that their services fall on all fours to the exempt services specified in Entry 9C of Notification CGST (Rate) 12/2017 as amended on 13.10.2017. Entry 9C-Limbs Applicability of TNSDC Supply of service TNSDC provides only service. There is no supply of goods. Government Entity "means an authority or any other body including a society trust, corporation, (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government, with 90per cent or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority.". TNSDC is a company incorporated on 05.07.2013 board or any other body including a society, under Section 8 of Companies Act, 2013.Its shares are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on two entries in the exemption notification in support of their contention that their supplies are exempt. The LA had opined that the said two entries are not applicable to the appellant and issued ruling accordingly. * The substantial question before the LA was only registration and not whether a particular entry of the notification is applicable or not. It could be appreciated that reference to entry numbers in the AAR ruling was not part of the question referred to it * The reference to the entry numbers in the ruling are descriptive. The operative part of the ruling is "they are required to be registered under CGST/TNGST Act, 2017" * They, in the present appeal has prayed for a direction that the appellant is not required to be registered under GST laws. The reference to entry numbers are only supports drawn. * The fundamental issue for which the ruling was sought was regarding registration and the appellant at that point believed that its supplies were exempt and drew support from two entry numbers. * After the AAR ruling, they are now guided and rightly that registration is not required under GST laws in as much as its supplies are exempt. They rely on Entry 9c of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistered under the GST Act. The question is raised by them in the context of the exemption extended to National Skill Development Corporation vide the entries at SI.No. 69 and serial No. 70 of the Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 and the relevant SGST Notification dated 29.06.2017. It is their contention that the activities undertaken by them in the State of Tamil Nadu is similar to the activities of National Skill Development Corporation at the Centre. The LA has examined their claim with regard to these entries and has extended the ruling that the specific entries referred by the appellant is not applicable to them and the activities being supply under Section 7 of the GST Act, the appellant has to get himself registered for the purposes of GST. 7.2 The appellant in the present appeal has not contested the findings of the LA on the applicability of the entry SI.No. 69 & SI.No. 70 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 but have stated that they had required ruling only on 'whether they are required to be registered under the ACT' for which they had relied upon the above two entries in the exemption notification in support of their cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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