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TMI Blog2023 (3) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 28-6-2017. The transaction between the Corporation and the contractor as listed in Sl.No. 12 (Running a fish market), for such an activity, the exemption under sl.no. 7 of Notification No. 12/2017-CT (Rate) is available as well as charging of tax on RCM basis under si. No. 5 of Notification No. 13/2017-CT(R) is available to the appellant subject to the fulfillment of the conditions envisaged therein. - A.R. Appeal No. 09/2021 /AAAR - ROE, - - - Dated:- 12-1-2023 - THIRU. MANDALIKA SRINIVAS, And THIRU. DHEERAJ KUMAR, MEMBER PROCEEDINGS UNDER SECTION 102 OF THE CGST ACT, 2017 UNDER SECTION 102 OF THE TNGST ACT, 2017 M/s. Erode City Municipal Corporation (hereinafter referred to as Appellant') 246. Brough Road, Erode holding GSTIN 33ABAIS3460E1Z8 filed an application for Rectification of Error (ROE) of the Appeal Order No. 20/2021 dated 01.12.2021, under Section 102 of CGST/TNGST Act, 2017. 2. The Appellant filed the instant application requesting rectification of decisions in the order No: AAAR/20/2021 (AR) dated: 01.12.2021, in respect of the following:- i. Appeal was against the Ruling extended for Q. No. 2 which had 13 activities and ruling was e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the AAAR. Therefore, the rectification application stands filed within the specified statutory period and the application is thus taken up for consideration of the error sought to be rectified. 5. The Authorised representative (AR) appeared for the hearing scheduled on 15.07.2022, on virtual platform; and reiterated the contents of ROE application as well as that of the additional submissions dated 15.07.2022 submitted by email. 5.1 Authorised Representative stated that in respect of the activity of 'Avenue Receipts'; 'Right to Fishing in pond' and 'Fish Market' they had sought eligibility of Notification No. 14/2017 CT(Rate) which was omitted in the Appellate order and urged to reconsider. 5.2 Authorised Representative stated further that in respect of Q.No.2 SI. No. 5A- Charges for TV Advertisement in bus stand; 5C-flower shop in bus stand ; and SI. No. 7 - bunk stall in the bus stand - of the said question it was held that under para 9.2 of the Appellate Order that the same would fall under renting of immovable property services under para 11(d) (ruling portion), it was ruled that the same would be covered under Sl.No.7 of Notification 12/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 7 -Bunk Stall' of the said question, the same is covered under SI. No. 7 of Notification No. 12/2017-CT (Rate) as well as charging of tax on RCM basis under SI. No. 5 of Notification No. 13/2017 - CT (Rate) subject to fulfillment of the conditions therein is available to appellant. 7. Prima facie, on perusing the ruling extended by the appellate authority, it is evident that no ruling was extended in respect of activities listed in SI. No. 10, 11 and 12; and therefore, the ruling to this extent requires rectification. The appellant has sought clarification on the services rendered by them listed in SI.No. 1 to 13, as to whether the services were covered under Twelfth Schedule to Article 243 W of the Constitution and /or exempted vide Notification No. mentioned against each SI. No when provided through tender contractors. The relevant entries (SI. No. 10,11 12) as furnished by the appellant in their application before the original authority for Advance Ruling is extracted hereunder: SI.No Description of the service Direct service by the corporation Service through contractors by tender process ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of fruits of the trees in highways of particular area as per the prescribed conditions of tender; to extend the right to take fish in a particular pond; and to extend the right to sell fish in a particular shop, in a specified area. 8. We find that the submissions with regard to this question stand discussed in Para 9 of the Appellate Order dated: 01.12.2021. The Appellate authority in para 9.1 of the Order dated: 01.12.2021 had held that the transaction between the corporation and the contractor is an activity /transaction undertaken by the local authority, engaged as public authority. The requirement explicitly stated in section 7(2) (b) are met. Further, in as much as this transaction/activity undertaken by the corporation is an activity covered under the above notification, this transaction/activity under sl.no. 1 to 9 and 13 ('except SI.No.5A charges for TV advt. in Bus Stand; 5C-Flower shop in bus stand in open space Sl.No.7-Bunk Stall') listed by the AAR as neither a supply of goods nor a supply of service are available to contractors also provided the same are rendered as back to back services to the appellant. 9. In respect of the activities at SI. No. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s exempted supply would not be applicable as claimed by Appellant in respect of Avenue receipts. f) Similarly, the entry in Sl.No.5 of Notification No. 12/2017-CT(Rate) dated 28-6-2017 and entry in Sl.No.24 of Notification No. 11/2017-CT(Rate) dated 28-6-2017 as exempted supply would not be applicable as claimed by Appellant in respect of Right to fishing in pond. g) Hence, the supply of said services which is basically conferring enjoyment of rights, would be liable to reverse charge by the Tenderer who is registered under the CGST Act /TNGST Act vide SI. No.5 A of Notification No. 13/2017-CT(Rate) dated 28-6-2017. 10. In respect of the activity- 'Running a fish market', i.e, extending the right to sell fish in a particular shop in a specified area, the activity is allowing/permitting to rent/renting a particular area to sell fish. The place being earmarked as awarded by the appellant, is in the nature of 'right to Renting of Immovable Property' by successful tenderer and therefore is not an activity in relation to functions entrusted to a Panchayat/Municipality. However, for such an activity, the exemption under sl.no. 7 of Notification No. 12/2017-C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of Error Ruling as per order No. AAAR/20/2021(AR) dated 01.12.2021 Rectified Ruling 11 c. In respect of Q.No. 2, the transaction between the corporation and the contractor as listed in Sl.No. 1 to 9 and 13, except at Sl.No. 5A-Charges for TV advt. in Bus Stand; 5C-Flower shop in bus stand in open space Sl.No. 7-Bunk Stalls' of the said question, in the factual matrix presented, it is held to be an activity/transaction in relation to the activity/transaction undertaken by the appellant engaged as Public authority and the same are covered under Notification No. 14/2017-C.T. (Rate) as amended. 11 c. In respect of Q.No. 2, the transaction between the Corporation and the contractor as listed in Sl.No. 1 to 9 and 13, except at Sl.No. 5A-Chargcs for TV advt. in Bus Stand; 5C-14owcr shop in bus stand in open space, Sl.No. 7-Bunk Stalls, of the said question, in the factual matrix presented, it is held to be an activity/transaction in relation to the activity/transaction undertaken by the appellant engaged as Public authority and the same are covered under Notification No. 14/2017-C.T.(Rate) as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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