Page 81 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : CONSULTING ENGINEERS GROUP LTD. 167
(b) Whether the service recipient i.e., APPRED is qualified for either of
the following, namely, Central Government, State Government or
Union territory or local authority or a Governmental authority.
Andhra Pradesh Panchayat Raj Engineering Department (APPRED)
was formulated during the year 1967 by the Government of Andhra
Pradesh. It functions directly under the Ministry of Panchayat Raj &
Rural Development and at State level Secretary to Government (PR
& RD) as its administrative head and Engineer-in-Chief as its tech-
nical head. While the Andhra Pradesh Rural Roads Connectivity
Project (APRRP) has been launched by the Government of Andhra
Pradesh to provide “all weather” road connectivity to unconnected
habitations with population of 250 or more, this Project is imple-
mented by the Panchayat Raj Engineering Department (PRED), of
Government of Andhra Pradesh. The Project will finance activities
including building new roads, cross-drainage structures, and resur-
facing/rehabilita-tion of existing roads. Moreover, APPRED, func-
tions directly under the Ministry of Panchayat Raj & Rural Devel-
opment and thus qualifies to be a Technical Wing of the Department
of PR&RD of the AP State Government.
(c) Now we examine whether the functions carried out by applicant are
in relation to any function entrusted to a Panchayat under Article
243G or to a municipality under Article 243W of the Constitution.
Article 243G of the Constitution discusses the Powers, authority and
responsibilities of Panchayats, stating that,
“Subject to the provisions of this Constitution the Legislature of
a State may, by law, endow the Panchayats with such powers
and authority and may be necessary to enable them to function
as institutions of self-government and such law may contain
provisions for the devolution of powers and responsibilities up-
on Panchayats, at the appropriate level, subject to such condi-
tions as may be specified therein, with respect to
(a) the preparation of plans for economic development and
social justice;
(b) the implementation of schemes for economic develop-
ment and social justice as may be entrusted to them in-
cluding those in relation to the matters listed in the Elev-
enth Schedule”.
Eleventh schedule of Indian Constitution contains 29 functional
items placed within the purview of the Panchayats :
The relevant function under which the services of the applicant as
extended to the APPRED fall under is, as follows,
“……
……
13. Roads, culverts, bridges, ferries, waterways and other
means of communication.
……”
Thus, the final condition is also satisfied.
Therefore, we conclude that the services provided by the Applicant
are exempted under Sl. No. 3 of Notification No. 12/2017, dated

GST LAW TIMES  13th August 2020  81