Page 121 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : A.B. ENTERPRISE 487

3. The applicant has submitted that the pre-requisite for claiming ex-
emption under the above entry is that it is necessary to provide pure service by
way of any activity in relation to any function entrusted to Panchayat under Ar-
ticle 243G of the Constitution or in relation to any function entrusted to a Munic-
ipality under Article 243W of the Constitution; that definition of ‘Pure service’
has not been given anywhere so that we can refer it; that hence, the term is con-
strued by the applicant in general meaning as : “Pure Service” means any supply
for consideration in which goods are not supplied along with services to construe
the same as composite supply, hence if a person provides only service to any
person for a consideration without involvement of supply of goods along with
the supply of services then the said supply of service can be termed as supply of
service. The applicant has also given definitions of Central Government, State
Government, local authority, governmental authority, government entity in his
submission.
4. The applicant has further submitted that the crux of the above ex-
emption entry can be summarized for taking benefit of the said exemption as
under :
(i) Pure services are provided.
(ii) Service recipient is either Central Government or State Government
or Local authority or Government entity : and
(iii) Such services are provided to the specified recipients to perform
functions as mentioned under Article 243G or under Article 243W
of the Constitution.
5. As per the applicant’s submission, [Article] 243G of the Constitution
of India has entrusted the following functions to the panchayats :
(1) Agriculture, including agricultural extension.
(2) Land improvement, implementation of land reforms, land consoli-
dation and soil conservation.
(3) Minor irrigation, water management and watershed development.
(4) Animal husbandry, dairying and poultry.
(5) Fisheries.
(6) Social forestry and farm forestry.
(7) Minor forest produce.
(8) Small scale industries, including food processing industries.
(9) Khadi, village and cottage industries.
(10) Rural housing.
(11) Drinking water.
(12) Fuel and fodder.
(13) Roads, culverts, bridges, ferries, waterways and other means of
communication.
(14) Rural electrification, including distribution of electricity.
(15) Non-conventional energy sources.
(16) Poverty alleviation programme.
(17) Education, including primary and secondary schools.

GST LAW TIMES  23rd July 2020  121