Page 77 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : CONSULTING ENGINEERS GROUP LTD. 163
(1.4) In the Contract between the Applicant and APPRED, there is
no component of transfer of property in goods as evident
from the contract agreement and is purely a service contract.
As per the scope of work mentioned above in Point No. 7 of
Exhibit-II, the Applicant is mainly engaged in providing
Consultancy services to the APPRED through its profession-
als and experts in various fields.
(1.5) The scope of work of the Applicant mainly surrounds to ser-
vices in relation to :
(i) Review & verification of the Project DPRs.
(ii) Project Management (execution) and Monitoring, and
(iii) Construction Supervision and Contract Management,
including QAC
(iv) Ensuring that the ESMPs are properly prepared and
implemented,
(1.6) A copy of Invoice raised has been attached along with de-
tailed bifurcation of cost which comprises of reimbursement
of Remuneration of Professionals and Experts employed for
undertaking various tasks assigned to the Applicant in the
Contract Agreement in Annexure-2. There is no component
of supply of goods in any invoices.
(II) APPRED qualifies to be a Central Government, State Government, Gov-
ernmental Authority or Local Authority
(2.1) APPRED is one of the Department under the Panchayat Raj
and Rural Development Department of Andhra Pradesh. The
Panchayat Raj and Rural Development Department is headed
by the Commissioner of Panchayat Raj, the Department of
Panchayat Raj and Rural Development is responsible for
planning and execution of programs for rural development.
(2.2) The definition of “Governmental Authority” as per the defi-
nitions given under Notification No. 11/2017-Central Tax
(Rate) and Notification No. 12/2017-Central Tax (Rate), dated
28th June, 2017 :
“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,
with 90 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 or to a Panchayat un-
der Article 243G of the Constitution.
(2.3) The definition of ‘Local Authority’ as defined in Section 2(69)
of CGST Act, 2017, is stated as under :
“local authority” means -
(a) a “Panchayat” as defined in clause (d) of article 243 of the
Constitution;
GST LAW TIMES  13th August 2020  77