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TMI Blog2024 (11) TMI 1327X X X X Extracts X X X X X X X X Extracts X X X X ..... ices in regard to Removal of Encroachment on Public Properties . We are therefore unable to accept the contention of the applicant that maintenance of the natural water body can be regarded as maintenance of community assets as specified in the Eleventh Schedule [Article 243G of the Constitution (Seventy-Third Amendment) Act, 1992]. The work to alleviate urban flooding is not listed in the Eleventh and/or Twelfth Schedule supra. However, the functions entrusted to a Panchayat or to a municipality as listed in the Twelfth Schedule include the functions viz. (i) drinking water or water supply for domestic, industrial and commercial purposes and (ii) protection of the environment and promotion of ecological aspects. In the instant case, the objective of the project inter alia includes improvement of water security and enhancement of environmental situation which is a subject matter of Twelfth Schedule [Article 243W of the Constitution (Seventy-Fourth Amendment) Act, 1992]. The supply made by the applicant to the Government of Manipur is in relation to a function entrusted to a Municipality under article 243W of the Constitution. Supplies made by the applicant for rejuvenating Lamphelp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /WB-AGR/2023-24/2 Dated 12/09/2023 for the execution of above-mentioned Works Contract. The purpose of the contract order is to dredge Lamphelpat Waterbody for enhancing the sustainable water potential for supply of water in the Imphal city, creates opportunities for development of new amenities, promote eco-tourism and recreational facilities. The works contract constitutes mainly of dredging and earthwork excavation which is purely construction and service work. Further, the cost of construction material transferred or consumed for execution completion of the work contract will be less than 5 (Five) percent of the total work order value as per the original contract agreement. 1.3 The applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under seeking an advance ruling in respect of following questions: (i) Will the supply be covered under Sl. No. 3A Notification No.9/2017 dated 28-06-2017 Integrated Tax (Rate) or Sl. No. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended from time to time? (ii) What will be the effective GST tax rate applicable to the supply? 1.4 The aforesaid questions on which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reservior means a place for storing liquid, especially a natural or artificial lake providing water for a city or other area. According to the applicant, a reservior is a public asset which is used, maintained, cleaned and preserved for the benefit of the society as a whole. It s upkeep is of vital importance for all members of the society since it is closely related to Water Supply and Flood Control for the people of the city. The applicant submits that maintenance of a reservoir also constitutes maintenance of community assets. Therefore, such activities are covered under Eleventh Schedule of Article 243G and Twelfth Schedule of Article 243W of the Constitution of India respectively as under: Matters listed in Eleventh Schedule includes Maintenance of community assets Matters listed in Twelfth Schedule includes Water supply for domestic, industrial and commercial purposes. 2.5 As per Section 65 (36a) of the Finance Act, 1994 Dredging includes removal of material including silt, sediments, rocks, sand, refuse, debris, plants and animal matter in any excavating, cleaning, deepening, widening or lengthening either permanently or temporarily, of any river, port, harbour, backwater a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ways, which includes activities in relation to the function listed under Sl No. 5 of the Eleventh Schedule, and, therefore, entrusted to a panchayat under Article 243G of the constitution of India. The recipient certifies that the work awarded to the applicant, involving drainage of channels and riverbeds, is an activity undertaken in relation to the function referred to above. Thus, the service provided was exempt under Sl. No. 3A of the Exemption Notification. (II) Neo Built Corporation: Order No. 05/WBAAR/2019-20 dated 10/06/2019: In this case, the Irrigation and Waterways Directorate, Govt of West Bengal has awarded the applicant a contract for the resuscitation by re-excavation of river Palaspai from Banskhal to Mahisghata, along with raising and strengthening of embankment on both sides of the river in Block Daspur -1 2 and Paschim Medinipur. The contract is meant for resuscitation of Palaspai River. It involves pumping out the water from the clogged channels, excavation of the drainage channels, lifting and deposit of the excavated materials to specified locations, and compacting earthwork for strengthening the embankment. Cost of supplying materials is included in the compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n surface excavation by using suction dredger, 500 CSD with cutter power 250 ICU and soil remediation of excavated earth. According to the schedules of work (Contract No. ACE-II/WR/F-62/2022/26, apart from the work mention above, the applicant performs re-sectioning of Nambul stream from Hump Bridge to Samushang Nalla. 4.4 The applicant contends that the aforesaid supply of services get covered under serial no. 3A of Notification No.9/2017 dated 28-06-2017 Integrated Tax (Rate) or entry no. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. We therefore proceed to examine whether the applicant fulfils the following criteria in order to claim exemption as specified in the aforesaid entry: (i) whether the instant supply of services can be regarded as composite supply of goods and services; (ii) whether the applicant provides services to the Central Government, State Government or Union Territory or local authority; and (iii) whether the said services are in relation to any function entrusted to a Panchayat under article 243G or to a municipality under article 243W of the Constitution of India. 4.5 The records submitted by the applicant includes certificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isheries. 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 centres 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 the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets. 243W. Powers, authority and responsibilities of Municipalities, etc.- Subject to the provisions of this Constitution, the Legislature of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : Project Context: The Lamphelpat area, in the west part of Imphal the capital city of Manipur, faces the problem of urban floods during the rainy season due to reduction in detention capacity of the Lamphelpat water body. Coping measures undertaken in the form of pumping to drain water during rainy days are not adequate and the area remains waterlogged for many days every year. The annual floods result in loss of property, infrastructure, and damage to human health while negatively impacting the biodiversity in the area. Thus, there is an urgent need to enhance the water detention capacity of Lamphelpat water body and restore the storm water drainage system and channels / streams in the catchment area to prevent flooding. Project Description : storm water drainage system and channels / streams in the catchment area, improve water security in Imphal by utilization of stored water in Lamphelpat water body as additional source of drinking water, and construct green spaces, Arc Bridge, biodiversity zone and tourism facilities around Lamphelpat water body to develop tourism potential of the area. The Project will also enhance environmental and flood management capacity in Imphal throug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he guidance of a naturalist, for the purpose of observing wildlife and learning about the environment and at the same time focus on wildlife and promotion of understanding and conservation of the environment . Dredging of Lamphelpat water body would impart benefits like increasing volume and depth of the water body by eradicating debris, improves water quality which in turn would create a sustainable ecosystem for aquatic flora and fauna. 4.10 The applicant also contends that maintenance of this natural water body can be regarded as maintenance of community assets. He submits that reservoir is a public asset which plays a pivotal role for supplying water to every household. The applicant performs the earthwork to keep the reservoir clean and preserved for better livelihood of that city. In order to examine the aforesaid argument of the applicant, we may refer to the Model Citizen Charter for Panchayats, June 2021 prepared by Ministry of Panchayati Raj (MoPR) in collaboration with National Institute of Rural Development Panchayati Raj (NIRDPR) for delivery of the services across the 29 sectors, aligning actions with localised Sustainable Development Goals (SDGs). The said document r ..... 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