Page 156 - GSTL_14th May 2020_Vol 36_Part 2

258 GST LAW TIMES [ Vol. 36
State of Gujarat v. Reliance Industries Limited — 2017-VIL-34-SC — Referred ............................ [Para 7.2]
Union of India v. West Coast Paper Mills Ltd. — 2004 (164) E.L.T. 375 (S.C.) — Relied on ...... [Para 12.3]
DEPARTMENTAL CLARIFICATION CITED
C.B.I. & C. Circular No. 76/50/2018-GST, dated 31-12-2018 ........................................................... [Para 16]
REPRESENTED BY : S/Shri Hardik Shah and Kumar Parekh, CAs, for the
Assessee.
[Order]. - The appellant, M/s. National Dairy Development Board (here-
inafter referred to as ‘M/s. NDDB’) is a statutory body constituted by an Act of
Parliament, namely, the National Dairy Development Board Act, 1987. M/s.
NDDB has created a trust in the name of ‘Anandalaya Educational Society’ and
allowed it to occupy the property within its campus. The property is allowed to
be used or leased at very nominal amount.
2. The appellant filed an application for Advance Ruling before the Gu-
jarat Authority for Advance Ruling (hereinafter referred to as the ‘GAAR’) and
sought ruling on following questions -
(i) Whether NDDB would be qualified as ‘Governmental authority’
from GST perspective?
(ii) Whether renting of immovable property service provided by NDDB
to an educational institute would be exempted under Sr. 4 of Notifi-
cation No. 12/2017-Central Tax (Rate)?
3.1 M/s. NDDB referred to the definition of ‘Governmental authority’
given under Section 2(16) of the Integrated Goods and Services Tax Act, 2017 and
submitted that since it is set up by an Act of Parliament, it would be ‘Govern-
mental authority’ from GST perspective as per clause (i) of the said definition. It
submitted that the condition of ‘ninety per cent. or more participation by way of
equity or control, to carry out any function entrusted to municipality under Arti-
cle 243W of the Constitution’ given below clause (ii) of the definition would not
be applicable to clause (i) of the said definition. In support of this contention, it
relied upon the decision of Hon’ble High Court of Patna in case of Shapoorji Pa-
loonji & Company Ltd. v. CCE, Patna [2016 (42) S.T.R. 681 (Pat.)].
3.2 As regards the eligibility of exemption under Sr. 4 of Notification
No. 12/2017-Central Tax (Rate), M/s. NDDB submitted that one of the function
entrusted to municipality is ‘promotion of cultural, educational and aesthetic
aspects’, the scope of which is very wide. It was submitted that services of rent-
ing of immovable property for educational institute would be covered within
provision of above article.
4. The GAAR, vide Advance Ruling No. GUJ/GAAR/RULING/
2019/2, dated 22-2-2019 [2019 (23) G.S.T.L. 151 (A.A.R. - GST)], ruled as follows :-
(i) National Dairy Development Board (24AADCN2029C1Z5) would
be qualified as ‘Governmental authority’ from Goods and Services
Tax perspective, if it fulfils the condition namely ‘with ninety per
cent. or more participation by way of equity or control to carry out
any function entrusted to a municipality under Article 243W of the
Constitution’.
(ii) Renting of immovable property service provided by National Dairy
Development Board (24AADCN2029C1Z5) to an educational insti-
tute would be exempted under Sr. No. 4 of Notification No.
GST LAW TIMES  14th May 2020  156