Page 89 - GSTL_23rd April 2020_Vol 35_Part 4

2020 ] IN RE : DOLPHIN TECHNO WASTE MANAGEMENT PVT. LTD. 415
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. The Applicant
performs compaction service and transport compacted garbage to the dumping
station with the help of hook loaders mounted in compactor machine. The bucket
machines are deployed for cleaning of sewerage. The Applicant also employs one
nallah desilting machine. As per the work order, diesel, oil, lubricants, spares
and accessories are provided by HMC. There is, however, no reference to any
supply of goods in the course of executing the work. The vehicles used and the
fuel consumed and the machinery used do not result in any transfer of property
in goods to HMC. The consideration to be paid measures the work only in terms
of the quantity of the garbage compacted. Based on the above documents, it may,
therefore, be concluded that the Applicant’s supply to HMC is a pure service.
3.6 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.
3.7 The Applicant’s service to HMC, therefore, is exempt under Sl. No.
3 of the Exemption Notification.
3.8 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.
3.9 It appears that the views of the concerned officer of the Revenue, as
expressed in e-mail dated 4-2-2020, are in conformity with the above observa-
tions of this Authority. Based on the above discussion, we rule as under :
RULING
4. The Applicant’s supply to the Howrah Municipal Corporation, as
described in para 3.5, 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. As the
Applicant is making an exempt supply, the provisions of Section 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.
5. 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  23rd April 2020  209