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2020 ] IN RE : PADMAVATHI HOSPITALITY & FACILITIES MANAGEMENT SERVICE 337
municipality for treatment of infectious diseases occurring in the
municipality; building hospitals, dispensaries or places of reception
for the sick in general”
 Hence DME is of the opinion that all the 95 Government hospitals
coming under the said DME falls under the Municipality and that
the functions entrusted to the municipality under Article 243W of
the Constitutions is “Public Health Sanitation, conservancy and sol-
id waste management”.
 The applicant has stated that the original Notification 12/2017 read
along with amendment 2/2018 issued on 25-1-2018 refers to “any
activity in relation to any function entrusted to Panchayat under Ar-
ticle 243G of the Constitution or in relation to any function entrust-
ed to a Municipality under Article 243W of the Constitution”. They
are of the opinion that all the 95 Government hospitals falling under
the DME comes under Municipality and not Panchayat and the no-
tification specifically states activities entrusted to a municipality or
panchayat. Hence it is very clear that this exemption notification
applies to panchayat and municipalities only and does not attract to
services provided by a private party to any State Government hos-
pitals.
 Under Article 243G of the Constitution, activities in relation to any
function entrusted to Panchayat is clearly listed out in the Eleventh
Schedule. From the list of function specified, the function relevant to
PHFMS is “health and sanitation including hospitals, primary
health centres and dispensaries”. Hence it is clear that health and
sanitation services including hospitals falling under panchayat and
primary health centres are exempt and the hospitals which are cov-
ered under DME falls under municipality and not panchayat.
 Further, from the list of functions entrusted to a Municipality under
Twelfth Schedule to Article 243W of Constitution the services as
specified under clause (f) viz “Public Health Sanitation, Conservan-
cy and Solid Waste Management…………” is relevant to PHFMS.
Hence it is very clear that the functions entrusted to Municipalities
under Article 243W which are relevant to PHFMS is only Public
Health Sanitation, Conservancy and Solid Waste Manage-
ment……….”. However PHFMS is providing housekeeping services
to Hospitals falling under Municipalities and not public health sani-
tation services.
 The dictionary meaning of the term public health sanitation is “San-
itation refers to public health conditions related to clean drinking
water and adequate treatment and disposal of human excreta and
sewage Sanitation systems aim to protect human health by provid-
ing a clean environment that will stop the transmission of disease,
especially through the fecal-oral route,”
 The term public health sanitation services as stated in Twelfth
Schedule means sanitation and similar services which are classified
under SAC 99945 which includes sweeping and cleaning but only
with reference to cleaning of roads and street and cleaning of hospi-
tal premises is not covered under sanitation or similar services.

GST LAW TIMES  16th April 2020  243