Page 158 - GSTL_14th May 2020_Vol 36_Part 2

260 GST LAW TIMES [ Vol. 36
(ii) The appointment of auditors for NDDB would be subject to ap-
proval of Central Government. [Section 28]
(iii) The Audit Report issued by the auditors would be laid before the
Parliament by the Central Government. [Section 29]
(iv) In case NDDB wishes to form new company or acquire any compa-
ny then the previous approval of Central Government is mandato-
ry. Central Government may make any scheme and liquidation can
be done by order of the Central Government. [Section 37]
In view of the above, the appellant has submitted that it is fully gov-
erned/controlled by the Central Government and hence it fulfills the condition
of ninety per cent. or more participation by way of control in order to qualify as
Governmental Authority.
9. Personal Hearing in this case was held on 14-6-2019, wherein in ad-
dition to reiterating their submission in the appeal memorandum, they submit-
ted Notification S.O. 1869(E), dated 9-6-2017 and Notification S.O. 1140(E), dated
6-3-2019 to buttress the point that their organization has been set up under the
Act of Parliament and is fully controlled by Central Government.
Findings (as per Ajay Jain) :
10. We have considered the submissions made by the appellant in the
appeal as well as at the time of personal hearing.
11. The main issue involved in this case is whether the exemption pro-
vided vide Sr. 4 of Notification No. 12/2017-Central Tax (Rate) is admissible to
appellant for providing service of ‘Renting of Immovable Property’ to ‘Anan-
dalaya Educational Society’. The said Sr. 4 of Notification No. 12/2017-Central
Tax (Rate) reads as follows :-
TABLE

Sl. Chapter, Section, Description of Services Rate Con-
No. Heading, Group (per dition
or Service Code cent.)
(Tariff)
(1) (2) (3) (4) (5)
4 Chapter 99 Services by [* * *] governmen- Nil Nil
tal authority by way of any activi-
ty in relation to any function en-
trusted to a municipality under
article 243W of the Constitution.

12.1 As the aforesaid Sr. 4 of Notification No. 12/2017-Central Tax
(Rate) provides exemption to specified services by ‘Governmental authority’, the
appellant has raised a question whether it would be qualified as ‘Governmental
Authority’ from GST perspective. The term ‘Governmental Authority’ has been
defined at clause (zf) of Para 2 of the said Notification as follows :-
“(zf) “Governmental Authority” means an authority or a board or any
other body, -
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government,

GST LAW TIMES  14th May 2020  158