Page 126 - GSTL_20th August 2020_Vol 39_Part 3

340 GST LAW TIMES [ Vol. 39
same provision under the APGST Act. Further, henceforth, for the purposes of
this Advance Ruling, a reference to such a similar provision under the CGST or
APGST Act would be mentioned as being under the GST Act.
3. Brief facts of the case :
M/s. Sri Satya Sai Water Supply Project Board, Office of Executive Engi-
neer (RWS), (hereinafter referred to as the Applicant) is a society registered un-
der the Societies Registration Act, 1997, and having its registered office at Office
of the Executive Engineer (RWS) Panchayat Raj Department, Z.P. Compound,
Anantapur. The Applicant was incorporated with the objective of undertaking
drinking water supply projects in Anantapur District, Andhra Pradesh.
Prior to the Applicant being constituted, ‘Sri Satya Sai Trust’, a public
charitable trust in Anantapur, undertook the drinking water supply project in the
year 1995 to provide drinking water facilities to around 731 villages. By January
1998, the project released water to around 630 villages, which included 273 indi-
vidual schemes. Since the individual schemes had to be monitored by Gram Pan-
chayat, all the 273 individual schemes were proposed to be handed over to the
Gram Panchayat. In respect of operation and maintenance of 19 comprehensive
protected water supply schemes, and 5 major comprehensive protected water
supply schemes, the Government of Andhra Pradesh by G.O. Ms. No. 344, dated
16-9-1997, constituted the Applicant “Sri Satya Sai Water Supply Project Board”.
The Applicant Board was then constituted as a society under the Societies Regis-
tration Act, 1997.
The Applicant Board, as constituted under G.O. Ms. No. 344, dated 16-9-
1997, consists of 9 Executive Members as appointed by the State of Andhra Pra-
desh. Out of the 9 members, 7 members of the Board are ex officio members who
include the Collector and District Magistrate, Anantapur; Chairman, Zilla Praja
Parishad, Anantapur, Superintendent Engineers from various divisions, and
Chief Executive Officer, Zilla Parishad, Anantapur. Amongst the remaining two
members, one member is nominee of Sri Satya Sai Central Trust, and the other
member is a retired Engineer-in-Chief, Panchayat Raj. Thus, the majority of the
Applicant Board consists of officers and employees of the Government of the
State of Andhra Pradesh.
Further, the G.O. Ms. No. 344, dated 16-9-1997 constituting the Applicant
also states that the Applicant can have regular staff on deputation from Pancha-
yat Raj Engineering Department, Irrigation, Roads and Building Department and
Public Health Engineering Departments. It further states that the cost of opera-
tion and maintenance of the water supply scheme shall be borne by the Govern-
ment and the Board at the rate of 70:30, with 70% of the cost being contributed by
the State Government, and 30% of the cost being borne by the Applicant from the
water charges being collected by the Applicant from the users. As per G.O. Rt.
No. 255, dated 21-2-2018, the Government released Rs. 3,500 lakhs to the Appli-
cant. The Applicant in addition to being majorly controlled by officers and em-
ployees of the State Government is also funded substantially by the State Gov-
ernment alone.
The Applicant has been entering into contracts in intervals of two years,
for operation and maintenance of 5 major comprehensive supply schemes and 19
protected water schemes with contractors. Under the terms of the agreement,
contractor would be responsible for the operation and maintenance of the plant,
while the Applicant would ensure that -

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