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TMI Blog2022 (7) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... mental authority 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. The activity of M/s. Zigma Global falls under this exemption notification, but it has been amended further vide Notification No. 16/2021-Central Tax (Rate) dated November 18, 2021, w.e.f. January 1, 2022 - services provided by the Applicant are no longer exempted under SI.No.3 of Notification No.12/2017 dated 28.07.2017 as amended further by Notification No. 16/2021 - Central Tax (Rate), dated: November, 18, 2021. - AAR No.11/AP/GST/2022 - - - Dated:- 30-5-2022 - SRI. D. RAMESH, AND SRI. RV PRADHAMESH BHANU, MEMBER Represented by : Sri B.Venkateswaran, Advocate ORDER (Under sub-section (4) of Section 98 of Central Goods and Services Tax Act, 2017 and sub-section (4) of Section 98 of Andhra Pradesh Goods and Services Tax Act, 2017) 1. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and SGST Act, 2017 are in pari materia and have the same provisions in like matter and differ from each other onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsibility of disposal of all aggregates as per SWM Rules 2016. Zigma raises monthly bill to the ULB based on the weight/volume of the waste cleared from the landfill. ULB pays zigma the monthly bills. Zigma reclaims land till the ground level (waste available up to ground level) If required, ULB can ask zigma to clear any waste available below the ground level for complete remediation. After complete reclamation/remediation, zigma decommissions the plant and machinery from the site. Zigma hands over the reclaimed land back to the ULB. To sum up, the applicant is engaged in the following process flow: M/s. Zigma extends pure service to the TTD in clearing the solid waste dumped using its machine, materials and manpower. They are not transferring any goods to TTD, during the course of providing service. The project is on design, build, own and operate concept so as to retrieve and recover materials by segregating and diverting for recycling the excavated materials and safe disposal of residues at approved disposal facilities. 4. Questions raised before the authority: The applicant had filed an application in f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 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 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. Nil Nil From the scope of the services, the applicant submits that, services are provided exclusively and no goods are supplied in what so ever manner the execution of disposal of legacy waste is carried out from the existing dumping site, through bioremediation bio-mining. It is the complete reclamation of the dumpsite land in compliance with Solid Waste Management (Management Handling) Rules, 2016. Hence the services to be provided by the applicant are Pure services . 5.3 Submissions for the TTD, as Governmental Authority as per the definition of Notification No.12/2017 Central Tax (Rate) dt:28.06.2017: The Governmental Authority has been defined as under, as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch, teaching, training and literature creation. The A.P. Charitable Hindu Religious institutions Endowments Act (1987) superseded the 1979 act. The Board of Trustees' membership was expanded from a maximum of eleven to fifteen and the hereditary rights of temple priests and their right to garner a share of the hundi proceeds were abolished. Now, TTD is a conglomeration of temples, brought under the first schedule 2 of the Act 30 of 1987. The Board of Trustees is constituted by members appointed by the government. The executive officer is the chief executive of TTD. He is assisted by two joint Executive officers, chief vigilance and security officer, conservator of forests, financial advisor chief Accounts officer, and chief engineer. Besides, there are officials to look after the different branches of administration. Some of the legal provisions relating to the governance and functions of TTD as per Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act 1987 (Andhra Pradesh Act No.30 of 1987) are presented below. With reference to TTD, the provisions of act are made applicable vide chapter 14 through rule 95 to 131 of the said act. So ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in the case of applicant's GSTIN registration 37AAACZ8255D1Z5 at Andhra Pradesh, the Authority for Advance Ruling-Andhra Pradesh, Goods and Services Tax, in their earlier Advance ruling has held that Solid Waste Management Project - Remediation of existing MSW Dumpsite at Ramapuram through bio-mining process under implementation of the smart city Mission in Tirupati falls under SI.No. 32 of Heading 9994 of Notification No.11/2017 Central Tax (Rate) dt: 28.06.2017. Further, the Authority had held that said service is exempted under SI.No.3 of Notification 1-21 2017 dt: 28.07.2017 as amended. The decision taken by the AAR AP IN R No. 10-AP-GST Dt: 05.05.2020 is squarely applicable in the present issue also. Further in case of applicant's GSTIN 37AAACZ8255D1ZD at Tamilnadu, the Authority for Advance Ruling Tamil Nadu vide order No.35/AAR/2020 dt: 21/10/2020 has held that Solid waste Management Project -Remediation of existing MSW Dumpsite at Velandiaplayam through bio-mining process under implementation of the Smart City Mission in Erode fall under SL. No. 32 of Heading 9994 of Notification No.11/2017 Central Tax (Rate) dt:28.06.2017. Further, the Authority had he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be dealt under this entry as mentioned here under: a) Whether the services rendered by the applicant are pure services. The Services rendered by the applicant as seen from the record, are devoid of any incorporation of goods in the process of supply. Even from the perspective of the scope of the services, as submitted by the applicant, they are services only and do not supply any goods in what so ever manner in the execution of disposal of legacy waste from the existing dumping site, by means of bio-remediation bio-mining with complete reclamation of the dumpsite land in compliance with solid waste management (Management Handling) Rules, 2016. Hence we concur with the opinion of the applicant that the services provided are Pure services . b) Whether the service recipient i.e., Tirumala Tirupati Devasthanam is a Governmental Authority as per the definition of Notification No:12/2017 Central Tax (Rate) dt:28.06.2017 as amended. Explanation - For the purposes of this clause, the expression 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 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As mentioned above, the work entrusted with the applicant fall under the functions entrusted to a municipality under the twelfth schedule to article 243w of the Constitution viz: public health, sanitation conservancy and solid waste management urban forestry protection of the environment and promotion of ecological aspects. In the context of the activity carried out by M/s. Zigma, though the primary purpose is solid waste management as per the guideline issued by the Central Pollution Control Board, the following incidental functions as per Article 243w is done. Public health, sanitation conservancy and solid waste management Urban forestry, protection of the environment and promotion of ecological aspects. As per the Services exemption notification, Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 exempts 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 C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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