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TMI Blog2022 (6) TMI 1461X X X X Extracts X X X X X X X X Extracts X X X X ..... contract service or other composite supplies involving supply of any goods) provided to the Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution. Hence, applicant is not eligible to avail the said exemption from tax. The scope of the ruling for Authority for Advance Ruling (AAR) is limited to the transactions being undertaken or proposed to be undertaken. In the instant case, the application seeking advance ruling was filed on 16.11.2021 before the RAAR with respect to supplies undertaken for the period from 01.11.2019 to 30.04.2021. Hence, the case is out of the purview of the Advance Ruling. - HON'BLE JUDGES VIKAS KUMAR JEPH, MEMBER (CGST) AND M.S. KAVIA, MEMBER (SGST) For the Appellant : Rajesh Arora, Authorized Representative DECISION 1. The issue raised by M/s. Sai Enterprises, Irish, 113, Manglam Ananda, Rampur Road, Near Sanganer Railway station, Sanganer, Jaipur-302029, Rajasthan - (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (b) (e) given as under: (b) applicability of a notification issued under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supply off and on, workmen shall operate main 11 KV and outgoing feeders VCR OCB KIOS (if available on 11 KV feeders) along with operating GO s and fuses of 11 KV feeders (iii) For providing single-phase supply by removing 33 KV sides and 11 KV side fuses or by other single phasing mechanism as per methodology and system instructed/directed by officers of JVVNL. (iv) All operation for providing three phase/single-phase supply on 11 KV feeders should be done carefully with all safety measure as well as guidelines prescribed for operations. (v) The contractor will be solely responsible for any damage of equipment or accident of any workman. (vi) In case contractor needs shut down at 33 KV/11 KV substation to carry out any repair or maintenance work prior permission of shut down shall be obtained from the concerning Assistant Engineer/Junior Engineer. The material required for such maintenance (excluding T P) shall be provided by the Assistant Engineer In-charge of the sub-station. Any shut down on any of the 33/11 KV lines at the substation required by Jaipur Discom s authorized employee(s) shall be given by the contractor or his authorized representative on the requisit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. If amount of damage/losses are more than due payment, then he will be liable to deposit the balance amount otherwise this will be recoverable as per law. (vi) The contractor shall replace 33 KV and 11 KV GO Blades/Rods. The requisite material shall be provided by Jaipur Discom. (vii) Initially the Nigam shall hand over the sub-station to the contractor with proper lighting arrangements including providing of fixture and bulbs, tube light etc. subsequently; the contractor shall maintain the lighting arrangements at the sub-station. (viii) The contractor or his authorized persons shall pour sufficient quantity of water in earthing pits in 33/11 KV Sub-station premises from time to time. That Notification No. 12/2017 of Central Tax (Rate) dated 28th June 2017 was amended vide Notification No. 32/2017 of Central Tax (Rate) dated 13th October 2017 to include clause (zfa) defining the term government entity. The term Government Entity was defined to mean an authority or a board 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 90 per cent or more participation by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rritory or local authority or a Governmental authority or Government Entity 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 contained under Notification Number 12/2017 of Central Tax (Rate) as amended by 02/2018. The same is reproduced herein below: 1.1.2 A perusal of the aforesaid notification would reveal that a registered person (registered under CGST Act) shall be entitled to charge CGST at Nil rate of tax when providing the above said services to Central Government State Government, Union Territory, a local authority or a governmental authority or government entity by way of pure services (excluding works contract service or other composite supplies involving supply of any goods) as mentioned in the notification. 1.1.3 The scope of services provided by M/s. Sai Enterprises to Jaipur Vidyut Vitran Nigam Limited are in the nature of pure services (excluding works contract service or other composite supplies involving supply of any goods), provided to the Central Government, State Government, Union Ter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n particular, of the Scheduled Castes and the Scheduled Tribes. (xxviii) Public distribution system. (xxix) Maintenance of community assets. 1.2.2 Jaipur Vidyut Vitran Nigam Limited is a government of Rajasthan Undertaking. Government of Rajasthan has floated Jaipur Vidyut Vitran Nigam Limited for the distribution and supply of electricity in 12 districts of Rajasthan. The company is wholly owned by the state government and is governed by a board of directors and is answerable to Governor of Rajasthan on behalf of State Government and its nominees. The paid-up capital of the company as on 31st March 2020 was Rs. 10,94,003 lakhs divided into 1,09,400.30 lakhs equity shares of Rs. 10/- each. The share holding pattern of Jaipur Vidyut Vitran Nigam Limited, as reported under Form No. Mgt-9 (Extract of Annual Return) filed with the registrar of companies for the financial year ended on 31st March 2020 is as under:- S.NO Name of Shareholders Shareholding (No of Shares) 1 Governor of Rajasthan on behalf of State Government and its nominees 10,94,00,30,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernment entity as defined in the clause (zfa) of paragraph 2 of notification number 12/2017 as amended by notification number 32/2017. 1.4 Exemption Notification 12/2017-CT(Rate) applicable to the Applicant: 1.4.1 A perusal of the provisions contained in Notification Number 12/2017 of Central Tax (Rate) : would show that the following conditions have been satisfied by the Applicant to charge CGST at Nil rate on the transactions with Jaipur Vidyut Vitran Nigam Limited: a. The Applicant is registered under the CGST Act. b. The Applicant is providing pure services to Jaipur Vidyut Vitran Nigam Limited (JVVNL) who is a government entity. c. The operation and maintenance services of identified 33/11 KV Grid Sub -Stations at defined locations as per work order are covered under pure services as mentioned in column (3) of serial number 3 of notification d. JVVNL is engaged in the services, or the functions entrusted to a Panchayat under the Eleventh Schedule to Article 243G of the Constitution. 1.4.2 Therefore. all the conditions contained in the notification have been complied with by the Applicant for the chargeability of CGST at the NIL rate. B. QUESTIONS ON W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on the contractor. b. Also, it appears that the services provided by the Applicant in respect of above mentioned Work Order is to be considered as Work Contracts Service in terms of definition of Work Contract under Clause (119) of Section 2 of the CGST Act, 2017. c. Thus, the said services provided by the Applicant are not covered under Pure services and the same is covered under the exclusion mentioned under S. No. 3 of Notification No. 12/2017 - Central Tax (Rate) dtd. 28.06.2017, hence, services provided by the Applicant are not wholly exempt vide S. No. 3 of Notification No. 12/2017 - Central Tax (Rate) dtd. 28.06.2017, as amended. E. FINDINGS, ANALYSIS CONCLUSION: 1. We have perused the records on file and gone through the facts of the case and the submissions made by the applicant as well as the department. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 2. Based on the written submission made by the applicant i.e. M/s. Sai Enterprises, we find that vide Work Order No. JPD/SE(TW)/XEN (TW-III)/TN-483/D/5016 dated 31.10.2019, the applicant was awarded a work related to Operation and Mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de which following amendments have been made in Notification No. 12/2017- Central Tax (Rate), dated the 28th June, 2017: In the said notification in the TABLE,- (i) against serial number 3, in column (3), in the heading Description of Services , the words or a Governmental authority or a Government Entity shall be omitted. 9. Keeping in view the above relevant legal position of the case, it is clear that the words or a Governmental authority or a Government Entity has been omitted at serial number 3, in column (3), in the heading Description of Services in the said Notification No. 12/2017- Central Tax (Rate) dated the 28th June, 2017 vide aforesaid Notification No. 16/2021-Central Tax (Rate) dated 18.11.2021 which resulted as withdrawn of exemption from tax from 01.01.2022. Thus, as on date there is no exemption is applicable on Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution. Hence, applicant is not eligible to avail the said exemption from tax. 10. Moreove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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