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TMI Blog2022 (10) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... the services rendered by the applicant are eligible for exemption as per entry at SL.No. 3 of the Notification No, 12/2017 CT (Rate) dated 28.6.2017? - HELD THAT:- In order to qualify for the exemption under the above entry, the following conditions are to be satisfied:- a. The services must be pure services b. It must be provided to the Central Government, State Government, Union Territory or local authority c. The pure services must be by way of any activity in relation to any function entrusted to a Panchayat under Article 243 G of the Constitution or in relation to any function entrusted to Municipality under article 243 W of the Constitution. As revealed from the records produced before this authority, the services rendered by the applicant are devoid of any incorporation of goods in the process of supply. Thereby the same is eligible to be classified as pure services excluding works contract service and other composite supplies involving the supply of any goods. Thereby the first condition is satisfied - the second condition is also satisfied - The Twelfth Schedule to the Constitution deals with the provisions that specify the powers, authority and responsibilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the perils of air pollution, water pollution and soil contamination. The services provided by Zigma are mandated under the Solid Waste Management Rules (SWM), 2016 and Central Pollution Control Board Guidelines for Disposal of Legacy Waste, February', 2O19.The Kollarn Municipal Corporation (KMC), have invited request for proposal for Bio-Mining and Scientific Closure of Legacy wastes at the dumpsite in Kureepuzha, Kollarn. With reference to this, the applicant washes to know the classification of the services provided, taxability of the services rendered by them to the Municipal Corporation, Kollam. It is also submitted that at present, the applicant has not registered with GSTN and hence obtained user id for the purpose of advance ruling and payment only. 4.2. The applicant submitted that Kollam Municipal Corporation (KMC) invited detailed proposals (bid) from interested parties having at least 3 years of experience in rehabilitation of dumpsites in India or abroad for Bio-Mining and scientific closure of legacy wastes at the existing dumpsite in Kureepuzha, Kollam. The project is based on 'Design and Build Basis'. In accordance with the Solid Waste Management Rules ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the excavated waste, storing the segregated materials, reuse, marketing, selling, and transporting them from the project site. 4.4. Further construction of temporary shed, platform and creation of facilities for handling, separating, segregating, storing and quantifying of the excavated waste and processing of the material will be the responsibility of the bidder, and the additional payment will be made for the same. Excavating the soil which lost its stability due to MSW dumping with necessary dewatering works in the portion of the land earmarked at the cost of the contractor. Excavated waste brought for segregation and processing from the earmarked land portion shall be quantified (in cubic meter, and weight based on number of vehicles trips and capacity) after excavation and record of the same shall be maintained by the contractor and authority jointly. Segregate the excavated MSW in the land portion earmarked into as many kinds and categories as possible of useful material such as compost, soil conditioner, recyclables, raw RDF, filler material (soil, C D) and un-useful material such as residual solid waste. Packing, storing, stacking, selling, diverting for recycling, mar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibles with utmost accuracy thus ensuring an impeccable quality of aggregate. Disposal - in this stage, the non-combustible fractions namely soil and stones are disposed for construction / earth filling and combustible factions as Refuse Derived Fuel to Cement companies. 4.5. It is also submitted that the applicant is providing solid waste management as per the provisions of Solid Waste Management Rule, 2016 and Central Pollution Control Board Guidelines for Disposal of Legacy Waste, February, 2019. Bio-remediation and Bio-mining of old municipal dumpsites refers to the excavation of old dumped waste and make windrow of legacy waste thereafter stabilization of the waste through bio-remediation i.e., exposure of all the waste to air along with use of composting bio-cultures, i.e., screening of the stabilized waste to recover all valuable resources (like organic fines, bricks, stones, plastics, metals, clothes, rags etc.) followed by its sustainable management through recycling, co-processing, road making etc. The first step is to excavate legacy waste, loosen it and make windrows so as the leachate can be dried of through solar exposure and all the entrapped methane is removed fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 is NIL rate and NIL condition. Nil Nil 4.7. It is further contended that from the scope of the services, it is to be understood that the applicant is to provide exclusive services only and not supply any goods in whatsoever manner in the execution of Disposal of legacy waste from the existing Kurumbapet dumping site, through Bioremediation Bio-mining means with 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 . 4.8. As per the Kerala Municipality Act of 1994, the Government of Kerala transferred powers and functions to local self-governments in 1995. along wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecological aspects. (i) Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. (j) Slum improvement and up-gradation. (k) Urban poverty alleviation. (l) Provision of urban amenities and facilities such as parks, gardens, playgrounds. (m) Promotion of cultural, educational and aesthetic aspects. (n) Burials and burial grounds: cremations, cremation grounds; and electric crematoriums. (o) Cattle pounds; prevention of cruelty to animals. (p) Vital statistics including registration of births and deaths. (q) Public amenities including street lighting, parking lots, bus stops and public conveniences. (r) Regulation of Slaughter houses and tanneries. 4.9. Therefore, Kollam Municipal Corporation is a local authority as defined in clause {69) of Section 2 of the CGST Act, 2017 and 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. (f) public health, sanitation conservancy and solid waste management. Though the primary purpose of the activity done by the applicant is Solid Waste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orking all day and night. 4.12. From the above it is to be understood that the services provided by the applicant is Solid Waste Management only . In the case of Applicants GSTN registration 37AAACZ8255D1Z5 at Andhra Pradesh, the Authority for Advance Ruling - Andhra Pradesh, in their 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 fall under SI. No. 32 of Heading 9994 of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017. Further the Authority has held that said service is exempted under SI.No.3 of Notification 12/2017 dated 28.07.2017 as amended. The decision taken by the AAR AP IN R NO-1O-AP-GST-2020 DT-05-05-2020 is squarely applicable in the present issue also. Further in case of Applicants GSTN: 33AAACZ8255D1ZD at Tamilnadu, the Authority for Advance Ruling Tamil Nadu vide order No.35/AAR/2020 dated 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 SI. No. 32 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, Heading, Group or Service Code (Tariff) Description of services Rate Condition 32 9994 Sewage and waste collection, treatment and disposal and other environmental protection services 9 Nil 7.3. Further, the relevant portion of the Scheme of Classification of Services under GST notified as Annexure to Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 reads as follows: Heading 9994 Sewage and waste collection, treatment and disposal and other environmental protection services Group 99941 Sewage, sewage treatment and septic tank cleaning services 999411 Sewerage and sewage treatment services 999412 Septic tank emptying and cleaning services Group 99942 Waste collection services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ultimate goal of the activity is the reclamation of the land after clearing the waste and the activity undertaken by the applicant is the removal of waste as per the norms of Solid Waste Management Rules 2016. The activity of the applicant merits classification under SAC 9994 - Sewage and waste collection, treatment and disposal and other environmental protection services - Group - 99943 - Waste treatment and disposal services as per Annexure to Notification No. 11/2017 CT (Rate) dated 28.6.2017. 7.5. The next issue to be examined is whether the services rendered by the applicant are eligible for exemption as per entry at SL.No. 3 of the Notification No, 12/2017 CT (Rate) dated 28.6.2017. Sl.No.3 of the Notification No. 12/2017 CT (Rate) dated 28.6.2017as amended by Notification No. 16/2021 Central Tax (Rate) dated 18.11.2021 reads as follows:- SI.No. Chapter, Section, Heading, Group or Service Code (Tariff Description of services Rate(per cent) Condition 3 Chapter 99 Pure services (excluding works contract service or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; (f) a Development Board constituted under article 371 and article 371J [KSGST (Amendment) Act. 2018] of the Constitution: or (g) a Regional Council constituted under article 371A of the Constitution Accordingly, the second condition is also satisfied. 7.9. The next condition to be fulfilled is whether the services is by way of any activity in relation to any function entrusted to the Municipality under Article 243 W of the Constitution. The Twelfth Schedule to the Constitution deals with the provisions that specify the powers, authority and responsibilities of Municipalities; it includes 18 matters. SI.No. 6 of the Twelfth Schedule to the Constitution under article 243W deals with Public health, sanitation conservancy and solid waste management. The services proposed to be extended by the applicant to the Kollam municipal corporation are Biomining and Scientific closure of existing waste at the dumpsite Kureepuzha, Kollam which is covered under this item. Thereby the 3rd condition is also satisfied. 7.10. Accordingly, the services provided by the applicant are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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