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TMI Blog2025 (4) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... heries of the Government of Gujarat; * that one of the vision of the Gujarat Fisheries Board [recipient of the service] is development of fisheries sector both marine and inland for socio-economic development of fisheries; * that fisheries is one of the functions entrusted to a Panchayat under Article 243G of the Constitution of India; * that to maintain minimum draft at fisheries harbour, dredging is essential and hence dredging activity is primary activity for maintenance of fishing harbour; * that they have enclosed certificate from the Chief Engineer of Fisheries department dated 28.6.2023; * that the dredging work has a direct nexus with fisheries development, which is listed under serial No. 4 of the XIth Schedule of the Constitution of India. 4. The applicant therefore feels that they are eligible for exemption under serial No. 3A of exemption notification No. 9/2017-IT (Rate) dated 28.6.2017 as amended. 5. In view of the foregoing, the applicant raised the following question seeking a ruling: Whether the supply of services of Dredging Activity undertaken by the applicant given to Government is covered in an exemption under serial No. 3A of notification No. 9/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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.] 10. The applicant has also attached along with his application, copy of 2 pages viz the first page titled as "Maintenance dredging at Porbandar, Fishery Harbour, Volume-I, issued by the Director of Fisheries, Gandhinagar. The second page enclosed is a extract of chapter 11, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itute more than 25% of value of supply of goods. (ii) dated 10.7.2023, certifying that the Fisheries department falls under Government of Gujarat; that their main activity is to provide better infrastructure facility & improve support system for fisherman; that the endeavour of the fisheries department is to increase fish production through various means like bringing more water bodies under scientific pisciculture, ensuring access of nonrationality balanced fish feed and high qualify fish seed/fingerlings to the fish farmers, dissemination of scientific knowledge about improved techniques of pisciculture, imparting hands on training to fishermen, etc .. 12. Briefly to summarize, the applicant has been awarded the dredging contract by the Fisheries Department. The applicant's averment is that the dredging service rendered would fall within the ambit of serial no. 3A of notification No. 9/2017-IT (Rate) dated 28.6.2017, as amended. 13. Now serial No. 3A of the exemption notification, as reproduced supra, clearly entails that- [a] it should be a composite supply of goods and service; [b] that the value of goods should not constitute more than 25% of the value of the said comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment entity, having been omitted from Serial No. 3A, vide notification No. 16/2021-IT(Rate) dated 18.11.2021, the averment of the applicant fails. 17. The applicant during the course of personal hearing has also submitted a copy of the 'Port Policy' of December 1995. This has been issued by the Ports & Fisheries Department, Government of Gujarat. What is relevant as far as the present application is concerned, is that along the 1600 kms of coastline of Gujarat, there are 41 ports, of which Kandla being a major port; that of the remaining 40 ports, 11 are intermediate ports and 29 are minor ports under the control of the Gujarat Maritime Board [GMB]; that Porbandar port is an all weather port with direct berthing facility; that draft of 8-10 mtrs are available at Porbandar, etc., where ships ranging from 15000 to 25000 tonnes are directly berthed; that Porbandar handles cargo containers for fish exports; that dredging being an important component for development of ports & its subsequent maintenance; that GMB after gradually withdrawing in a phased manner would encourage formation of JV company to form Dredging Corporation of Gujarat. On going through the GMB website, [https:/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s matter, the issue involved was upgradation of Jalda Kutli Landing Centre by protection to Mandarmani river & upgradation of navigability by dredging of Mandarmani river. The Authority in this matter in paragraph 4.5 held that "It appears from the documents mentioned in para 2.2 that the recipient is a government entity as defined under clause 2(zfa) of exemption notification." * Reach Dredging Ltd Order No. 13/WBAAR/2024-25 dated 1.10.2024. In this matter, the issue involved was execution of project of development of water body/reservoir at Lamphelpat, Imphal West, Manipur under the project name 'Rejuvenation of Lamphelpat water body to alleviate urban flooding, providing sustainable water source for Imphal city & promoting eco tourism.' The Authority in this matter in paragraph 4.5 held that "It transpires from above that the applicant provides the aforesaid services to Government of Manipur". As is evident the facts are clearly different. Further, as already mentioned supra, the term 'government entity' stands omitted from the exemption notification. Even otherwise, in terms of Section 103 of the CGST Act, 2017, the advance ruling pronounced by the Authority is binding only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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