Case Details: Devendra K Patel, In re - [2025] 180 taxmann.com 72 (AAR-GUJARAT)
Judiciary and Counsel Details
- Sushma Vora & Vishal Malani, Member
-
Anish Goyal, CA for the Applicant.
Facts of the Case
The applicant provides works contract services and engineering consultancy services to various State Governments. It was submitted that these activities qualified as pure services rendered to the State Government in relation to functions entrusted to a Panchayat or Municipality under Articles 243G and 243W of the Constitution of India and were therefore exempt. It was contended that such services, when connected with public welfare, should fall within the ambit of functions listed under the Eleventh and Twelfth Schedules. The matter was placed before the Authority for Advance Ruling (AAR).
AAR Held
The AAR held that the exemption under Section 11 of the CGST is available only where the consultancy services have a direct nexus with functions entrusted to a Panchayat under Article 243G or to a Municipality under Article 243W. It is interpreted that the applicant’s services would qualify for exemption only in respect of specific buildings and structures. It was observed that activities which are unrelated to constitutionally entrusted functions would not fall within the exemption entry. It accordingly ruled that the applicant’s services are exempt only to the extent expressly identified and taxable in all other cases.
List of Cases Referred to
- Devendra K Patel, In re [2024] 163 taxmann.com 310 (AAR – GUJARAT) (para 4)
- Devendra Kantibhai Patel, In re [2025] 173 taxmann.com 550/98 GSTL 113 (AAAR-GUJARAT) (para 9)
- Nirma University, In re [2021] 124 taxmann.com 137/59 GSTL 437 (AAR – GUJARAT) (para 14)
- Kerala State Construction Corporation Ltd., In re [2019] 105 taxmann.com 222/74 GST 78/24 GSTL 807 (AAR – KERALA) (para 14)
- Meerabai Tukaram Borade, In re [2022] 141 taxmann.com 49/93 GST 35/[2023] 68 GSTL 78 (AAAR-MAHARASHTRA) (para 14)
- Doypack Systems Pvt. Ltd. v. Union of India AIR 1988 SC 782 (para 20)
- Navin Chemicals Mfg. and Trading Co. Ltd. v. Collector of Customs 1993 taxmann.com 522/1993 (68) ELT 3 (SC) (para 20)
- Janki Sushikshit Berojgar Nagrik Seva Sahakari Sanstha Ma Amravati, In re [2020] 122 taxmann.com 206/[2021] 46 GSTL 277 (AAR – MAHARASHTRA) (para 21)
- Hyderabad Metropolitan Water Supply and Sewerage Board, In re [2022] 145 taxmann.com 364/71 GSTL 310 (AAAR-TELANGANA) (para 21)
- Sankalp Facilities and Management Services (P.) Ltd., In re [2023] 150 taxmann.com 507/74 GSTL 332 (AAAR-GUJARAT) (para 21).
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