Order date – 01 December 2021

Facts

• The applicant, M/S Natural Resource Management and Common Wealth, is registered in Bhopal. The applicant entered into contract agreement with Chief Engineer, PHE Department, Kargil, Ladakh UT for consultancy services for ISA under Jal Jeevan Mission.
• The applicant believed that services supplied are consultancy services without the supply of any goods and are in nature of pure services and is covered under S.No. 3 of notification 12/2017.

Issue

• Whether the services provided by the applicant can be exempted under S.No. 3 of notification 12/2017- Central Tax Rate?

Order

• The authorities observed the notice issued by the recipient for expression of interest (EOI) and the agreement and held that the plain reading of the agreement reflects that the applicant has to supply pure services like manpower, technical experts, etc and no supply of goods is involved.
• The authorities further observed that the recipient of services is Public Health Engineering which is Dept. of UT and services performed by applicant is covered under entry 22 of article 243G and entry 5 of article 243W of the Constitution.
• Hence, the authorities ruled that as the supply is made from principle place of business i.e. Bhopal to UT of Ladakh, the services are covered S.No. 3 of notification 12/2017-Central Tax Rate 28.06.17 and therefore it is NIL rated.