Page 154 - GSTL_20th August 2020_Vol 39_Part 3

368 GST LAW TIMES [ Vol. 39
appeared for personal hearing on 23-10-2019 and they reiterated the submission
already made in the application.
6. Applicant’s interpretation of law and facts :
The applicant submits that APIIC has to be considered as ‘governmental
entity’. As per the explanation X of the Notification No. 11/2017-Central Tax
(Rate), dated 28-6-2017, as amended, a government entity is defined as follows :
(x) Government Entity means an authority or a board or any other body
including a society, trust, corporation,
(i) set up by an Act of Parliament or State Legislature; or
(ii) established by any Government,
with 90 per cent, or more participation by way of equity or control, to carry
out a function entrusted by the Central Government, Stale Government,
Union Territory or a local authority.
Therefore, any board or body (including a society, trust, corporation), which is
set up by an Act of the Parliament or State legislature, where 90% or more partic-
ipation by way of equity or control shall be held as government entity. Further, a
local authority is also considered to be a government entity.
In this regard, they submit that APIIC is incorporated under the Compa-
nies Act, 1956. APIIC is a limited company with an authorized share capital of
Rs. 20,00,00,000/- (Rs. Twenty Crores only) divided into 2,00,000 (Two Lakh on-
ly) equity shares and Paid up capital of Rs. 9,52,22,000/- (Rupees Nine Crore Fif-
ty Two Lakh Twenty Two Thousand only) divided into Rs. 95,222 (Rupees Nine-
ty Five Thousand Twro Hundred and Twenty Two only) in accordance with the
Companies Act, 1956. Further, the subscribers of the equity shares are nominees
on behalf of the Government of Andhra Pradesh.
Assuming without admitting that APIIC is not a governmental entity, it
is submitted that APIIC is still covered under the Notification No. 11/2017-
Central Tax (Rate), dated 28-6-2017, as amended, as the Government of Andhra
Pradesh had empowered APIIC with Local Authority Status by amending the
Section 147 of Andhra Pradesh State Panchayat Raj Act, 1994, U/s. 389-GB of
Andhra Pradesh Municipalities Act, 1965 and U/s. 679-F of Hyderabad Munici-
pal Corporation Act, 1955.
And also they submit that the APIIC was formed through Andhra Pra-
desh GO No. 831, dated 10-9-1973.
In regard of the above, they submit that APIIC is a government entity as
per the explanation X of the Notification No. 11/2017-Central Tax (Rate), dated
28-6-2017, as amended.
And also they submit that, as per G.O. RT No. 50, dated 14-3-2016 of
Government of Andhra Pradesh, the Government of Andhra Pradesh has issued
IT Policy to pursue the promotion of Electronic Manufacturing Clusters
(EMC)/Information Technology (IT)/Information Technology Enabled Services
and spread of IT industry to all regions of the State not only to see that the fruits
of IT reaches the last mile of the State, but also generate gainful employment to
the rural youth of all the sections of the society in the State. As per the Infor-
mation and Communication Technology (ICT) Policy, it is mandate of Govern-
ment to provide infrastructure facilities such as road, power, water and sewerage
to the door step of the EMC/IT/ITES Layouts/parks/SEZs/Campuses of IT In-
dustry.
The Government of Andhra Pradesh has nominated APIIC as the Nodal
Agency of the Government for undertaking development of EMC’s/IT Parks/IT
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