Page 79 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : CONSULTING ENGINEERS GROUP LTD. 165
13. Roads, culverts, bridges, ferries, waterways and other
means of communication.
…..”
(3.3) The Department of Panchayat Raj and Rural Development is
responsible for planning and execution of programs for rural
development. The main functions of the Department are as
follows :
• Implement schemes for rural development
• Improve the coverage and quality of infrastructure facili-
ties in rural areas.
• Make provision to provide clean drinking water
• Execute minor irrigation and poverty alleviation pro-
grams
(3.4) The Department is entrusted for implementing several
schemes to improve living conditions of people in rural areas
and to create economic awareness in rural areas. Some of the-
se schemes include :
• Rural Water Supply
• Rural Sanitation
• Jawahar Gram Samrudhi Yojana (J.G.S.Y)
• Community Development
• Construction of Mandal Buildings
• Construction and maintenance of rural roads
• Employment Assurance Scheme (E.A.S.)
(3.5) The Andhra Pradesh Panchayat Raj and Engineering De-
partment has been entrusted for implementing schemes for
construction of Rural roads by the Panchayat Raj and Rural
Development Department.
(3.6) Hence, the PMC services provided by the Applicant for con-
struction of Roads in Rural areas of the State of Andhra Pra-
desh are in relation to function entrusted to a Panchayat un-
der Article 243G of the Constitution.
The applicant finally submits that the Project Management and Consultancy ser-
vice, is a ‘Pure Service’, provided to APPRED, being a ‘Local Authority’ would
be eligible for exemption under Entry 3 of the Notification No. 12/2017-Central
Tax (Rate), dated 28-6-2017 as such activity qualify to be in relation to functions
entrusted to Panchayat under Article 243G of the Constitution.
6. Record of personal hearing :
The authorised representative of the applicant, M/s. Rajvanshi & Asso-
ciates, Chartered Accountants appeared for personal hearing on 5-2-2020 and
they reiterated the submission already made in the application.
1 6. Discussion and findings :
We have examined the issues raised in the application. The taxability,
classification of the services, applicable rate of tax, eligibility of exemption etc.,
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1 Paragraph number as per official text.
GST LAW TIMES  13th August 2020  79