Page 151 - GSTL_16 April 2020_Vol 35_Part 3

2020 ] IN RE : DIPAK KANTI MAZUMDER DYNAMIC ENGINEERS 365
4.5 In the Work Orders issued to the Applicant the recipient describes
the nature of the work as operation of bucket machine sets at zone A, B and C of
HMC, operation of combined Jetting Cum-Suction Machine at different parts of
HMC. After lifting and removing of daily garbage accumulated from the vats,
dumping yards, containers and other places on the roads, lanes and bye-lanes of
HMC area, those garbage are brought to the compactor station. Applicant per-
forms compaction service and transport compacted garbage to the dumping sta-
tion with the help of hook loaders mounted in compactor machine. There is,
however, no reference to any supply of goods in the course of executing the
work. The consideration to be paid measures the work only in terms of the quan-
tity of the garbage lifted and removed. Based on the above documents, it may,
therefore, be concluded that the Applicant’s supply to HMC is a pure service.
4.6 Furthermore, Article 243W of the Constitution that discusses the
powers, authority and responsibilities of a Municipality, refers to the functions
listed under the Twelfth Schedule as may be entrusted to the above authority. Sl.
No. 6 of the Twelfth Schedule refers to public health, sanitation, conservancy and
solid waste management. The Applicant’s supply to HMC is a function men-
tioned under Sl. No. 6 of the Twelfth Schedule.
4.7 The Applicant’s service to HMC, therefore, is exempt under Sl. No.
3 of the Exemption Notification.
4.8 The TDS Notifications bring into force Section 51 of the GST Act,
specifying the persons under Section 51(1)(d) of the Act and have mandated and
laid down the mechanism for deduction of TDS. These notifications, therefore,
are applicable only if TDS is deductible on the Applicant’s supply under Section
51 of the GST Act. Section 51(1) of the Act provides that the Government may
mandate inter alia a local authority to deduct TDS while making payment to a
supplier of taxable goods or services or both. As the Applicant is making an ex-
empt supply to HMC the provisions of Section 51 and, for that matter, the TDS
Notifications do not apply to his supply.
5. Based on the above discussion, we rule as under :
RULING
6. The Applicant’s supply to the Howrah Municipal Corporation, as
described in para 4.5, is exempt from the payment of GST under Sl. No. 3 of Noti-
fication No. 12/2017-Central Tax (Rate), dated 28-6-2017 (corresponding State
Notification No. 1136-FT, dated 28-6-2017), as amended from time to time.
7. As the Applicant is making an exempt supply, the provisions of Sec-
tion 51 and, for that matter, Notification No. 50/2018-Central Tax, dated 13-9-
2018 (corresponding State Notification No. 1344-FT, dated 13-9-2018) and State
Government Order No. 6284-F(Y), dated 28-9-2018, to the extent they mandate
and deal with the mechanism of TDS, do not apply to his supply.
8. This Ruling is valid subject to the provisions under Section 103 until
and unless declared void under Section 104(1) of the GST Act.

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GST LAW TIMES  16th April 2020  271