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TMI Blog2025 (3) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... Control Scheme and is one of the designated Service Providers for operating MVUs in the allotted districts of West Bengal. West Bengal Livestock Development Corporation Limited directed the applicant to supply MVU personnel purely on contractual basis, maintaining the guidelines of the tender applicable in this case as well as MVU guidelines issued by the competent authority from time to time. The applicant is required to, inter alia, supply labour/manpower for running the production at different units of the West Bengal Livestock Development Corporation Limited. The applicant has, accordingly, been supplying MVU personnel and raising tax invoices from time to time - Admittedly the applicant makes supply of labour/manpower for running the production at different units of the West Bengal Livestock Development Corporation Limited. In the instant case, the West Bengal Livestock Development Corporation Limited has entered into an agreement with the applicant for supply of MUV personnel on contractual basis for which the applicant issues invoices to the aforesaid implementing agency. Admittedly, the West Bengal Livestock Development Corporation Limited is liable to pay the considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices Tax Act, 2017 or West Bengal Goods and Services Tax Act, 2017 (hereinafter collectively called 'the GST Act'), if aggrieved by this Ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Tax Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed there under, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the West Bengal Livestock Development Corporation Limited. 2.2 The applicant is also required to perform a host of assignments, including provision of animal healthcare services through deployment of Mobile Veterinary Units (MVUs) under the Livestock Health & Disease Control Scheme of the Department of Animal Husbandry and Dairying, Ministry of Fisheries & Animal Husbandry and Dairying, Government of India. The West Bengal Livestock Development Corporation Limited is one of the designated Service Providers for operating MVUs in the allotted Districts of West Bengal. For implementation of the said scheme, operational guidelines have been issued by the Department of Animal Husbandry & Dairying, Government of India. 2.3 On 13.02.2023 a memorandum was issued by the Chief Executive Officer, Paschim Banga Go-Sampad Bikash Sanstha to the Deputy Director, ARD & PO Department, Government of West Bengal on the acceptance of Mobile Veterinary Units. It was stated in the said memorandum that emergency animal healthcare services at farmers' door step would be provided through Mobile Veterinary Units (MVUs) and that the competent authority had approved the operation of Mobile Veterinary Uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther guidelines, including delineating roles and responsibilities of all functionaries at different levels. It has been contemplated in the said scheme that Mobile Veterinary Units (each having one veterinarian, one para-veterinarian and one driver cum attendant) would be operationalized as part of the strategy for Establishment & Strengthening of Veterinary Hospitals & Dispensaries, funds for which will be provided by the Central Government to the State Government/Union Territories. It has also been contemplated that the Mobile Veterinary Units could run on PPP model with the government providing the infrastructure but manpower being outsourced by the implementing agencies. 2.8 From a careful reading of the said operational guidelines as well as the aims and objectives of the Scheme, it becomes clear that the Central Government in association with the State Government has sought to operationalize Mobile Veterinary Units as part of the strategy for Establishment & Strengthening of Veterinary Hospitals & Dispensaries. It also becomes clear that the MVUs would run on PPP mode, whereby manpower would be outsourced by the implementing agencies to private parties such as the present a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services are wholly intended for benefit of the public at large and the same seek to improve the animal health sector. As such, supply of Mobile Veterinary Unit personnel by the applicant which forms part of the overall execution of the Livestock Health & Disease Control Scheme should be classified under the said Sl. No. 6 of the aforesaid exemption notification dated 28.06.2017. 2.12 The applicant's provision of MVU personnel ought not to be segregated as an individual supply by a private party to the Governmental Authority/Government and charged to GST separately. The applicant is but an extension of the arm of the Governmental authority/Government concerned inasmuch as the PPP model is nothing but a modality for operationalizing the Scheme above-mentioned. Any contrary approach would be destructive of the Government's intention as well violative of the beneficial objectives sought to be achieved. It is in this context that outsourcing of MVU personnel services to the applicant which is already a successful tendered of the West Bengal Livestock Development Corporation Limited should be understood. 2.13 No element of individual "supply' by the applicant is involved in the instan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e extended to the applicant in the present case. After all, just because of the private-public partnership model through which the aforesaid Scheme is being implemented, exemption which is otherwise available to the supplier should not be denied, especially since the core aspect of the entire services of a veterinarian, para-veterinarian and ambulance/MVU driver cum attendant is provision of healthcare of animals and birds. 2.16 The applicant states that animal husbandry, caring for farm animals and provision of healthcare services are intrinsically connected. Under Article 243G of the Constitution of India read with entry no. 4 to the Eleventh Schedule thereto, a Panchayat is responsible for implementation of schemes, amongst others, in relation to the matter of animal husbandry, dairying and poultry. The services in question provided by the applicant fall within the ambit of "by way of any activity in relation to any function entrusted to a Panchayat" and are eligible for exemption under sl. no. 3 of Notification No. 12/2017-CT(Rate) dated 28.06.20217. 2.17 From a perusal of the definition of 'animal husbandry' given in authoritative dictionaries, it becomes evident tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, functions and duties to a panchayat as are exercised and performed by the State Government in relation to animal resources development. In this regard, it may be noted that the Department of Animal Resources Development, Government of West Bengal is responsible for formulation and implementation of livestock and poultry policies in the state of West Bengal and one of its main functions relates to providing of health cover and containment of diseases through various services as well as disease diagnosis and surveillance. 2.20 It is humbly submitted that a forward-looking State is constitutionally obligated to boost the animal healthcare sector and take steps for disease control, as part of its duties to organize animal husbandry on scientific lines. Such view of the matter would also accord with animal welfare jurisprudence in India. 2.21 The principle of contemporanea expositio, which is a well settled principle of statutory interpretation, fully supports the applicant's aforesaid explanations and submissions. The Department of Animal Husbandry and Dairying under the Ministry of Fisheries, Animal Husbandry and Dairying (Government of India) has itself recognized the preser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department/ revenue till date. 2.23 The applicant has submitted a certificate from Directorate of Animal Resources & Animal Health vide memo no. 5168/5P-608/2021 (P-II) dated 27-12-2024 where the Director of Animal Husbandry & Veterinary Services, West Bengal inter alia certifies that: (i) the applicant is an selected agency (through tender) of the West Bengal Livestock Development Corporation Ltd, a Government of West Bengal Undertaking; (ii) the applicant has been providing the said services directly to the Government of West Bengal through ARD Department, which exercises effective control over the Livestock Health & Disease Control Scheme and is responsible for its implementation in the state of West Bengal. The ARD Dept Govt of west Bengal provides the infrastructure and funding for the scheme in collaboration with the Government of India. (iii) it is to be understood that the Government of West Bengal is the recipient of services from the applicant. 2.24 The applicant thus is of the view that the services in question are eligible for exemption under sl. no. 3 of Notification No. 12/2017-CT(Rate) dated 28.06.20217. 3. Submission of the Revenue 3.1 The Assistant Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment of Animal Resources Development, Govt. of West Bengal, is the project implementing agency for such Livestock Healthcare & Disease Control Scheme and is one of the designated Service Providers for operating MVUs in the allotted districts of West Bengal. 4.4. Accordingly, West Bengal Livestock Development Corporation Limited directed the applicant to supply MVU personnel purely on contractual basis, maintaining the guidelines of the tender applicable in this case as well as MVU guidelines issued by the competent authority from time to time. The applicant is required to, inter alia, supply labour/manpower for running the production at different units of the West Bengal Livestock Development Corporation Limited. The applicant has, accordingly, been supplying MVU personnel and raising tax invoices from time to time. The applicant-service provider is also required to perform a host of assignments, including provision of animal healthcare services through deployment of Mobile Veterinary Units (MVUs) under the Livestock Health & Disease Control Scheme of the Department of Animal Husbandry and Dairying, Ministry of Fisheries & Animal Husbandry and Dairying, Government of India. Admit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government does not stand either. 4.8 Regarding the issue under sl. (ii) of para 4.2 above, i.e. whether the supply in this case is being provided by the Government, i.e. Department of Animal Resources Development, Govt. of West Bengal, and is exempted in terms of Sl. No. 5 or 6 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, this is to mention that the entry in terms of Sl. No. 5 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 is concerned exclusively with supply of services by a Governmental Authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution, whereas, the entry in terms of Sl. No. 6 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 is concerned exclusively with supply of services by the Central Government, State Government, Union territory or local authority excluding, (a) services by the Department of Posts and the Ministry of Railways (Indian Railways)]; (b) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (c) transport of goods or passengers; or (d) any service, other than servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng goods is not clear in this case. In case, the applicant himself is supplying the goods element, then automatically this supply fails to qualify as pure service as per pre-condition, vide sl. (a) as discussed in para 4.10 above, of Sl. No. 3 of the Notification No. 12/2017-Central Tax (Rate) dated 18.06.2017. In that case, one may consider Sl. No. 3A of the afore-said Notification where it requires to be ascertained whether the concerned composite supply of goods and services is of the nature where the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply. The other two pre-conditions vide sl. (b) and (c) as discussed in para 4.10 above, stand applicable for both Sl. Nos. 3 as well as 3A of the Notification No. 12/2017-Central Tax (Rate) dated 18.06.2017. 4.12 Now, regarding the pre-condition, vide sl. (c) as discussed in para 4.10 above, there is no denial that the applicant's supply of services in question is related to animal husbandry, darying and poultry is directly covered by entry no.4 of the 11th Schedule to the Constitution of India appended to Article 243G of the Constitution of India and hence can be held as a supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partment concerned, i.e. the Department of Animal Resources Development, Govt. of West Bengal. The expression 'veterinary clinic' has not been defined in the GST Act. However, in common parlance, a veterinary clinic means a building or part of a building where animals are provided with treatment or medication including diagnosis, surgery, general health care and observation. Here the applicant is merely a supplier of manpower services on contractual basis for running a Mobile Veterinary Unit. Thus, such supply of manpower made by the applicant cannot be held as a supply of services by a veterinary clinic in relation to health care of animals or birds and hence such supply fails to qualify for exemption benefit under Sl. No. 46 of the Notification No. 12/2017-Central Tax (Rate) dated 18.06.2017 as amended. In view of the foregoing, we rule as under: RULING The applicant's supply of MVU personnel on contractual basis for implementation of "Establishment and Strengthening of Veterinary Hospitals & Dispensaries (ESVHD) - Mobile Veterinary Unit (MVU) under Livestock Health & Disease Control (LH & DC) Scheme" is not eligible for exemption benefit under Sl. No. 3 or 3A or 5 or 6 or 46 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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