Page 104 - GSTL_13th August 2020_Vol 39_Part 2

190 GST LAW TIMES [ Vol. 39
tivities of the applicant falls under SAC Code No. : 9994 “Sewage and waste collec-
tion, treatment and disposal and other environmental protection services” as per An-
nexure to Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017. We con-
cur with the opinion of the applicant after a thorough examination of the nature
of the services of the applicant by classifying them under Sl. No. 32 of Heading
9994 of Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017.
Subsequently now we examine whether services provided by the appli-
cant is exempted under Sl. No. 3 of Notification No. 12/2017, dated 28-7-2017 as
amended.
Sl. No. 3 of the above notification describes pure services (excluding
works contract service or other composite supplies involving supply of any
goods) provided to the Central Government, State Government or Union territo-
ry or local authority or a Governmental authority by way of any activity in rela-
tion to any function entrusted to a panchayat under Article 243G of the Constitu-
tion or in relation to any function entrusted to a Municipality under Article 243W
of the Constitution.
There are multiple issues that are to be dealt under this entry as men-
tioned hereunder :
(a) Whether the services rendered by the applicant are pure services.
The Services rendered by the applicant as seen from the record, are
devoid of any incorporation of goods in the process of supply and
the agreement copy between the applicant and Tirupati Smart City
Corporation Limited reveals the same citing the approximate value
of the work to be done under the agreement for a sum of Rs.
18,64,00,000/- (Rupees Eighteen Crore Sixty Four lakh only) for
2,00,000 MT (Contract Price). Hence, they are classifiable as pure
services, excluding works contract service and other composite
supplies involving supply of any goods.
(b) Whether the service recipient i.e., M/s. Tirupati Smart City Corpo-
ration is a “Governmental Authority” as per the definition of Notifi-
cation No. : 12/2017-Central Tax (Rate), dated 28-6-2017 as amend-
ed.
Now we examine whether the service recipient is a “Governmental authority as
examined under Section 2(16) of the IGST Act, or as defined vide Notification
No. 31/2017-Central Tax (Rate), dated 13-10-2017, which reads as under;
“Explanation. - For the purposes of this clause, the expression “Governmen-
tal 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, with ninety per cent or more
participation by way of equity or control, to carry out any
function entrusted to a panchayat under Article 243G or to a
municipality under Article 243W of the Constitution.”
Now we examine whether the TSCCL is qualified by the above conditionalities.
(i) Whether the applicant is set up by an Act of Parliament or a State
Legislature?
The applicant does not fall under this category

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