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TMI Blog2023 (7) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... e the language of the statute is clear and unambiguous, nothing can be read into it by implication and the intention of the legislature has to be gathered from the language used. In view of the plain and unambiguous definition of the term business in the CGST Act there is no need for recourse to construction or interpretation and the plain meaning of the statue has to be applied - Therefore, the services provided by the applicant to its affiliated colleges are covered by the definition of business in the CGST Act and consequently constitute a supply within the meaning and scope of supply as defined in Section 7 of the CGST Act, 2017. Whether the supply is exempted under the entry at SI Nos. 4 and 5 of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017? - HELD THAT:- The entry Nos. 17, 18 and 19 of Eleventh Schedule of the Constitution covers all types of education and education is also covered under entry No. 13 of the Twelfth Schedule of the Constitution. Therefore, education is a function entrusted to both Panchayath as well as Municipality under Article 243G and 243W respectively of the Constitution. University is a key institution of social change and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Contentions of the Applicant: 4.1. The applicant submits that as per Section 56 of the Calicut University Act University has the power to grant affiliation to the colleges as per the procedures in terms of Chapter 23 of the University first statute. As per the statute, University can collect application fee from the colleges seeking affiliation along with other incidental fees. The University provide several functions to the affiliated colleges, some of them are listed below; a) conducting periodical inspections with the assistance of experts; b) conducting entrance examinations for students admission; c) preparing list of eligible candidate for admission and merit; d) allotment of candidates to various collages based on the option; e) verification of admission with respect to qualification and eligibility; f) registration of candidates with university; g) conducting examination; h) valuation of answer scripts; i) issuance of marks list. 4.2. The definition of the term services from CGST/KSGST Act section 2(102) extracted as follows. services means anything other than goods, money and securities but includes activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly pr acquisition of goods including capital goods and services in connection with commencement or a closure of business; (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefit to its members; (f) admission, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h) services provided by a race club by way of totalisator or a licence to book maker in such club; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities 4.5. The University is constituted not to carry out any business as envisioned under the GST Laws and is not doing any such business activities. The Apex Court in State of Tamil Nadu Vs Board of Trustees of the Port of Madras reported in (1999) 4 SCG 630 while addressing the issue on the question whether Port Trust of Madras can be brought under the tax net of the Madras General Sales Tax Act for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d proceedings against the applicant under any provisions of GST Act 2017. 6. Personal Hearing: The applicant was granted opportunity for personal hearing on 19.04.2023 through Virtual Mode. Shri, V.V Ashokan, Senior Advocate represented the applicant The applicant filed detailed Written Submission dated 15.04.2023 reiterating the contentions already made in the application and in addition to that reproducing the service classification codes relating to education services and the exemption entries under SI No. 4,5,66 and 67 of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017. They also submitted copy of the Ruling dated 19.11.2020 of the Advance Ruling Authority of Tamil Nadu in the application of Bharathiar University and also the copy of the Order dated 07.12.2022 of the Commissioner of CGST (Appeals), Mangalore in the case of Mangalore University. He requested to issue the ruling on the basis of the submissions made by them in the application, during the personal hearing and the submissions in the Written Submissions dated 15.04.2023. 7. Discussion and Conclusion: 7.1. We have carefully examined the statement of facts, the oral submissions made dur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tinctions on persons who shall have pursued a prescribed course of sturdy in a college under the University and shall have passed the prescribed examination or shall have under prescribed conditions carried on research which has been duly evaluated; to confer honorary degrees or other distinctions on distinguished persons in accordance with the conditions to be prescribed in the statutes; to grant diplomas, certificates or other distinctions to persons who shall have pursued a prescribed course of study under prescribed conditions; to withdraw or cancel degree, titles, diplomas, certificates or other distinctions under conditions that may be prescribed in the statutes; to supervise and control the residence and discipline of the students of the University, colleges and recognised institutions ? and to make arrangements for promoting their health and general welfare etc. Section 2 (2) of the said Act defines; affiliated college as a college affiliated to the university in accordance with the provisions of the Act and the Statutes and in which instruction is provided in accordance with the provisions of the Statute, Ordinances and Regulations. The applicant grant affiliation to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be treated neither as a supply of goods nor a supply of services. (3) Subject to the provisions of sub-sections (1), (1A) and (2), the Government may, on the recommendations of the Council, specify by notification, the transactions that are to be treated as ,- (a) a supply of goods and not as a supply of services; or (b) a supply of services and not as a supply of goods? 7.6. It is contended that as per the above definition of supply one of the essential ingredients for a transaction / activity to constitute supply is that it should be undertaken in the course or furtherance of business and the applicant is providing only education services and not carrying out any business activity. Education is more a mission and avocation rather than a profession or trade or business as the aim of education is creation of well educated healthy young generation imbued with a rational and progressive outlook of life, -The applicant placed reliance on the judgments of the Hon hie Apex Court in' the case of State of Tamil Nadu Vs Board of Trustees of the Port of Madras reported in (1999) 4 SCO 630 and University of Delhi and others Vs Ram Nath and others reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legislature has to be gathered from the language used. In view of the plain and unambiguous definition of the term business in the CGST Act there is no need for recourse to construction or interpretation and the plain meaning of the statue has to be applied. Hence, the observations of the Hon'ble Apex Court relied upon by the applicant being made in the context of the meaning of the term business under other laws are not relevant in determining whether an activity or transaction is business under the GST Act Therefore, the services provided by the applicant to its affiliated colleges are covered by the definition of business in the CGST Act and consequently constitute a supply within the meaning and scope of supply as defined in Section 7 of the CGST Act, 2017. 7.8. Having come to the conclusion that the services provided by the applicant to its affiliated colleges constitute a supply within the meaning and scope of supply as defined in Section 7 of the CGST Act, 2017; the next issue to be decided is whether the supply is exempted under the entry at SI Nos. 4 and 5 of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017. 7.9. The entry at SI Nos. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Animal husbandry, dairying and poultry. 5. Fisheries. 6. Social forestry and farm forestry. 7. Minor forest produce. 8. Small scale industries, including food processing industries. 9. Khadi, Village and Cottage industries; 10. Rural housing, 11. Drinking Water. 12. Fuel and fodder. 13. Roads, culverts, bridges, ferries, waterways and other means of Communication. 14. Rural electrification, including distribution of electricity. 15. Non-conventional energy sources. 16. Poverty alleviation programme. 17. Education, including primary and secondary schools. 18. Technical training and vocational education. 19. Adult and non-formal education. 20. Libraries. 21. Cultural activities. 22. Markets and fairs, 23. Health and sanitation, including hospitals, primary health centers and dispensaries. 24. Family welfare. 25. Women and child development. 26. Social welfare, including welfare of the handicapped and mentally retarded. 27. Welfare of the weaker sections and in particular of the scheduled castes and Scheduled tribes, 28. Public Distribution System. 29. Mainte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... os. 17, 18 and 19 of Eleventh Schedule of the Constitution covers all types of education and education is also covered under entry No. 13 of the Twelfth Schedule of the Constitution. Therefore, education is a function entrusted to both Panchayath as well as Municipality under Article 243G and 243W respectively of the Constitution. University is a key institution of social change and development and the applicant being a Public University established under The Calicut University Act, 1975 an Act passed by the Legislature of the State of Kerala falls under the definition of Governmental authority in Para 2 (zf) of Notification No. 12/2017 CT (Rate) dated 28.06.2017. Therefore, the services provided by the applicant to its affiliated colleges are services by Governmental authority by way of activity in relation to function entrusted to a Panchayath and Municipality under Article 243G and 243 W of the Constitution and accordingly exempted from payment of GST as per entries at Si Nos. 4 and 5 of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017. RULING Question-1: Whether the activities or services being provided by the University to its affiliated colleges a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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