Page 167 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : SHREE HARI ENGINEERS & CONTRACTORS 405
2013 nor is there any reference therein which infers that the work has been en-
trusted to them by any Government, Union Territory or a local authority. Thus,
the work carried out by the applicant for M/s. Railtel Corporation of India Ltd. is
not a function entrusted by the Central Government, State Government, Union
Territory or a local authority. In view of the above, M/s. Railtel Corporation of India
Ltd. does not fall under the category of ‘Government Entity’. Hence the third condition is
not satisfied.
14.4 Now, the important point that needs to be discussed in detail is as
to whether the civil structure that has arisen or come into existence as a result of
the work executed/service provided by the applicant for M/s. Railtel Corpora-
tion of India Ltd. i.e. optical fiber cables laid under the ground is meant predom-
inantly for use other than for commerce, industry, or any other business or pro-
fession as envisaged in 3(vi)(a) of Notification No. 24/2017-Central Tax (Rate),
dated 21-9-2017. The work done by the applicant for M/s. Railtel Corporation of
India Ltd. involves digging of trenches and laying of optical fiber cables for the
purpose of supply of internet connection to the Gram Panchayat. However, it
cannot be construed that the optical fiber cables laid underground are meant
predominantly for use other than for commerce, industry, or any other business
or profession. Further, there is an explanation clause which reads as under :
“For the purpose of this item, the term ‘business’ shall not include any ac-
tivity or transaction undertaken by the Central Government, a State Gov-
ernment or any local authority in which they are engaged as public authori-
ties;”
The said explanation clause is not applicable in the instant case as these are not
activities undertaken by the Central Government, State Government or a local
authority but are undertaken by M/s. Railtel Corporation of India (on behalf of
M/s. Bharat Broadband Network Ltd.) through the applicant.
The term ‘business’ is defined in clause (17) of Section 2 of the CGST Act,
2017 which reads as under :
(17) “business” includes -
(a) any trade, commerce, manufacture, profession, vocation, ad-
venture, wager or any other similar activity, whether or not it
is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or
ancillary to sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a),
whether or not there is volume, frequency, continuity or regu-
larity of such transaction;
(d) supply or acquisition of goods including capital goods and
services in connection with commencement or closure of busi-
ness;
(e) ----
(f) ----
(g) ----
(h) ----
(i) ----
From the above definition of business, it is clear that any activity of trade, com-
merce, manufacture etc. or any other similar activity is included in the definition
GST LAW TIMES  16th July 2020  167