Dismissed

GUJ/GAAAR/APPEAL/2025/03dt. 22.01.2025 of M/s. Data Processing Forms P Ltd.

GST AAAR22 Jan 2025GUJ/GAAAR/APPEAL/2025/03dt. 22.01.2025

Case brief

AI extract

What is this about?

The Gujarat High Court dismissed an appeal against an Advance Ruling denying tax exemption. The Court held that the Gujarat Panchayat Service Selection Board does not qualify as a 'local authority' under the CGST Act, and the Gujarat Public Service Commission is not the 'State Government' as defined, thus denying exemption to the appellant.

What did the court decide?

The appeal filed by M/s. Data Processing Forms Pvt. Ltd. against the Advance Ruling dated 28.09.2022 was rejected.

GUJ/GAAAR/APPEAL/2025/03dt. 22.01.2025 of M/s. Data… — Service and Employment | GST AAAR (2025)

¶1

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(;ti.tAIlA,t. AI)t)I,l[,t.A't'u Ati't'tIotrI't'y^{[-oIt At)vANCl']l{ti l'IN(;} (;OOI)S ANI) SEITVICT]S'I'AX I)/5, llA.IYA KAI{^{l}IIAVAN,ASIIIIAM ll()Al),} AIIMI.]I)AI}AI) -^3ItOOO9.

¶4

..fl,tff'o*
""-idrulRxet

¶5

At )VANCI^{1 I{U LING(Apl,ttAL) No. GtJJ/(iAAAIt/A}'}l'>l,Al,l2o25lo3} (t N AITPLI C A', I'l ON NO.^{Aclvancc I{ul ing/Scs',l'&CGS'. l' I 2022/AIV1 0 )}

¶6

l)atc^'. zz^{.01 .2025}

¶7

Narncandaddrcss^ol'thc appcllantⁱ	Vlt.I)ata l)roccssing^{IiortttsI)l'tcl',} l)ataIloutsc,VcjalPur^[]usStand, Vcjalpur, Ahmcdabacl- 380^051.
(iS'l'lNol'thcaPPcllant .lurisclictionOl-ficc	24LAACI)5^4tl0L;,17.7. CcntciCornrnissioncrettc^{-Al-rrncdabaclSoutl-r} DivisionVIII-^VcjalPur Itangc-II
/\ilr,anccltuling^No. ancl	GIJJ/GAAI{/R^{12022143datccl28.9'2022}
l)atc
[)atc'oIappc al	17.10.2022
I)atcol-Pcrsonal^IIcarirrg	8.11.2024
I)rcsctrtfor thc^aPPcllant	Shri Ilhupcsh^{Marctha (Advocatc),} ShriJccvan^{Vasavc(z\dvocatc)}

¶8

At thc outsct^{rvc wouldlil<c to mal<c it clcar that thc provisitlnso['} thc Clcntral Goocls^{anci Scrviccs'l'axAct,2017anc,l (itr.iarat"(-,otlcls ancl} Scr-r,,iccs'l'ax Act,^{2017 (hcrcinalicr rclcrrcclto as tl-rc 'C(lS'l'Act,20i7' attii} rhc^,GGS'I' Act,^{2Ol7') arc pari mqreriaancl havc thc samc'provisionsin lil<c} ,rattcr ancl clif {br lom^{cach othcr only on a l'cw spccilic provisious.'l'hcrclirrc,} unlcss a mcntion^{is particularlymadc to such clissirlilar provisions, a rclcrcncc} to thc CGS'I' Act,^{2Ol7 woulcl also n']can rclcrcncc to thc con'csponcling} similar provisions^{in thc GGS'I' Act, 2O1l'}

¶9

'). 'l'hc prcscnt appcal is lllccl rlndcr Scction 100 o{' thc^(.GS l' Acr. 2017 ancl thc GGS'I'^{Act, 2011 by M/s. I)ata Proccssingliort'ns I) Ltcl-} (hcrcirralicr rclcrrccl to as'appcllant')^{against thc Aclvancc ItulingNo.} ( I tr J /( r AAI{ /l<l2022|43 datccl 28.9 .2022 '

:j n e

Ilriclly, thc lbcts arc cnumcratcd bclow lbr casc ol rcfcrcncc:

¶14

a thc appcllant is cngagcd in thc manulbcturing of computcr lorms, cut shccts,^printcd Iilrrns & is also cngagcd in trading of printcrs, cartridgcs, laptops, barcoclc stickcrs, ON4l{ Shcct, cclucalional booklcts. ctc.;

¶15

a thcy pnrvidc bclow mcnlionccl scrviccs to^(iujaral I'ublic Scrvicc Commission ((ll'}SC) ancl^(ir-rjat'at Panchayat Scrvicc Sclcction Iloarcl (GI'SSI));

¶16

Sr.	Scrviccs	Naturcol'scrviccs
Nrr	provitlctl to
I	GI'SC	ICUOCII{/OM[{scannir-rgscrviccs,capturingar-rdgcncrationol'soli da1a,linkLrpofsolidatawithprc-cxalninatioltdata.ItcsLrlt proccssingol'cxarninationanclprcparationol'variousrcpofts (Poslcxaminationscrviccs)
)	(iI,SSI}	[)rintingol'clucstir)r] papcrancJOMI{shccthaving scrialttr"rnrbcring andbarcodc.('l'hcscopcol-workol-thcapplicantrclatcsto con-lposc,typcsct, prirrt,percl<,tratrslrortarrclsupplyscalcclQucstion I'}apcrs/OMI{)e11dICI{/OCIVOMI{scanning. I

¶17

a [l-rc appcllanL is o1'thc vicw that thc albrcmcntioncd scrviccs proviclcd 1o^(il'}S(] ancl (il'}Ssll arc cxclnptcd in lcrms of cntrics 3 and 3A o1'chaptcr 99 o1 thc Notification t2l20r 7-c r' (R).

¶18

In vicw of'tl-rc lbrcgoing I'acts, thc appcllant had sought Advancc

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Ituling on thc following qucsLi<>ns, viz:

¶20

(i) In rclation to scrviccs providccl to thc GPSSII: whcthcr thc scrviccs^proviclcclto thc Panchayal Scrvicc lloard, amounts to scrviccs^proviclccl to^{thc Panchayat,} ancl covcrcd unclcr cntrics 3 and 3A, o1 thc Nolil-rcation and cxcmptcd^{iom (ioods ancl Scrvicc^'['ax?

¶21

(ii) [n rclatictn to 1hc scrvic,cs providcd to thc^(ir-rjarat I'r-rblic Scrvicc Commission: Whcthcr thc scrviccs providcd 1o thc^(iujarat I'}ublic Scrvicc^Commission amounls to sct'viccs proviclcd to thc Statc^(iovcrnmcnt, covcrccl^{unclcr cnl.rics3} zincl 3A ol'thc Notilication and cxcrnptcd ll'om^(ioocls ancl Scrvicc'['ax?

¶22

(iii) Whctl"rcr ti-rc scrviccs proviclccl to thc^{(ir-rjarat 'l'cchnologiczrl} lJnivcrsity amounts to scrviccs prcviclccl to thc^(iovcrnmcnt Irntity or^{(iovcrnmcntAr"rthot'ity.} cligiblc lbr tax cxcmpli<ln unclcr cntry 3 ancl iA ol'thc^{notil'rcation?}

¶23

l/'t'hc third ctucstion was witlqtawn by thc^{appcllant ch:ringthc cot-u'sc ol- thc} procccdines bclbrc GAAI{.

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5 . Conscclucnt to hcaring thc applicant,^{thc Guj arat Authority lor}

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Advancc Ituling IGAAI{1, rccordcd thc fullowing^{findings viz}

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Guiarnt Panch:t vat Sc Sclcction lloarcl^(l I'S SIi)

¶27

. thc ntauLlscript lr>r printing clucstiolr^{papcrs/OMItshccl i} s suppliccl by^(il'}SSI]; . thc rnanuscript nratcrial is^{ownccl by (it'SSI]whilc thc p} hysical inpr,rts bclong to tl-rc appcllar-rt:

¶28

. that it constitutcs contpositc supply^{o[ goocls & scrvicc} s; that supply of printing is pr-incipal sr_rpply & would bc ciassilicd^{undcrSAc 99ti9;}

Pagc 2 of l0

a that it woulcl^{nor lall within Sr. No. 3 of thc notification No. l2l20l7-c'l'(It)as thc} saicl scrial^{numbcr pcrtainsto 'purc scrvicc';}

¶33

a that as far^{as sr. No. 3A is conccrnccl,thc appcllanthas not providccldctails o1'valuc} of thc goods^{wl-rich constitulc thc supply;}

¶34

a thal GITSSI]^{docs no1 Iall withinthc arnbit of local authorityas clcllnccl undcr 2(69)} ol- thc CGS'I'^{Act, 2gl7; that GITSSI] is ncithcr Ccntral (iovcrnmcntor Statc} (lovcrnnrcnt;

¶35

a that i' vicw .l't5c^{6rcgoing, thc appcllernt'uvor-rlclnot lall r'r,'ithin thc atrbit ol'Sr'} No. 3A ol'thc notilication,^ibid.

¶36

()u ar t I'}ubli Scrvic C-ommissitln (; t,s(l

¶37

. thc appcllants^{scrviccto (iI'}SO is purc scrvicc,}

¶38

. that GpSC thougl-r a constitutional^{boclyclocsnot clualily as (iovcrnmcnt/Statc} (iovcrnmcnt; that thc scrviccs proviclccl^{arc also not scrviccsby way<lf any activity} in rclati.n t<l^{any function cntiuslcil to a Panchayat unclcr Arliclc 243Gor functiot]} cntrustccl to Municipatitl,^{unclcr arliclc243 W of thc (lonstitulionol- Inclia;}

¶39

. thatthc scrviccs suppliccl^{to (il,Sois not cligiblcIor cxcrnp[ionundcr scrialno' 3 of} notillcatron, ibicl.

¶40

'l'hc GAAI{, viclc thc in"rpugnccl ruling datccl ltt.l 0.2021 ,^{hclcl as}

¶41

lollows:

¶42

"^Rulittg

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(i) the applic:ant^{i,s rutt eligible to the exempliontrnclerenlrlt 1\1s.3 ancl 3tl q/} noti/iccttirn l{o.^{t2/201-7-C7'(R) clcrtecl2B-6-2017cr,saruended.fbr supTtly o/} sert,ice to lhe^{Gujcu"al l'anchayatSerttice Selec:lirtnlJocrrtl.}

¶44

(ii) the applicctnt^{sertticessuppliedto the Gttiarat J'rtblic ServiccCommi,ssion do} not fail uncler^the functions^{entrusteclto a Panchayal under arlicle 243G o/ the} Constil,tion,^{henceapplicanr is nor eligible to the exemptirtn ttnderenlry lrlo'3} an4 3tl o/ noti/icatiin^{l,lo. t2/2017-C't'(lt) date(t 28-6-2017cr,s amenclecl .fitr} .sttppl1, o./'s'ert,ic'a^{ts lhe Gttjorcrl l'ublic $gvltic:e Comrtti.r's'ittrt' "}

¶45

l. Aggricvcd by rhc^{irnpugncclItuling datcd 28.09.2022,thc appcllant}

¶46

is bclorc us, raising^{thc lbllowingcontcntions , viz}

¶47

. thc appcllant has rcliccl upon^{thc juclgcmcnts in thc casc of'A.iilsinghr,'l'hc} Itajasihan Statc^{Iilcctricity Iloard'&It C Jain';}

¶48

. thc appcllapt has rcliccl upon thc^{clcfinitionclf 'localauthoritl"as dcfinccl u/s 3(31)} ol'thc^{(lcncralClar-rscs,'\ct;}

¶49

. thal thc GpSSI] has bccn cstablishccl^{in tcnnso[' scction 235 o1' thc Guiarat} panchayat Act, 1993 & thatthc fur-rctions of thc Iloarcl^{arc Iistcclin sub-scctior"rs6 &} 7' t)

¶50

. that a conjoint^{rcacling ol'soctio ns 74,227(5),235(6),274, itrid" rcvcalsthat (it'}SSI]} is an ir-rtcgral^{part ol: lranchayatsystcm & thcrclorca localauthoritv;tl-rat it is} c,vcrc,cl undcr il-,.^{pr,ruisionsof'articlc 243G & cntitlccl ltrr thc bcncfltol'sr.no' 3 &} 3A ol'thc notilication.^it"ricl:

¶51

r t6at GIrSg. a copstitutional bocly^{having its o\ltidcntity,.isll00"1, ctltrtrollccl'} financccl & managcd^{by thc Statc (iovcrnnrcnt & is liablc to ['rc classiljccl as'Slule} (]ot'ct'tunenl' .

¶52

n!i

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'^{ntR t96z 8s6}

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' ts6t^{(3) scR 377} t ntn 198t sc 95

{!;,'

Pagc 3 ot- l{}

, .,"t: ..,,.,}

a tlic conclusiorr eu'r'ivccl al. post" r'cliancc o[' thc GAAI{ on thc circular clatcd 20.11.2017 ancl^(lS'l' llycr is not corrcct in so lar as thc printing work cnllmcratccl in thc circular is printing ol'cprcstion papcrs. OMIt which rccluirc onlv tnanual or nrcchernical r,r,orl<: that thc rvork clonc by thc appcllar"rt is highly ctlnl-rdcntial in naturc. scnsitivc & rccluircs accuracy;

¶60

thal thc agrccnrcnt pcrtaining 1o rcsult proccssing work is ignorcd; that thc post cxamination rcsult work is'purc scrviccs';

¶61

a that thc cost ol'papcr is Its 6.05; that thc cost of papcr is bclow 25% lie Its. 6.05/l{s. 40.951; that thc composilc scrvicc providccl is cligiblc lbr cxcmption unclcr cnlry 3A ol' thc cxcmption notillcation.

¶62

U. Pcrsonal hcaring in thc rnattcr was hcld on Oti.11.2024, whcrcin Shri []hupcsh Marctha, Aclvocatc, Shri Jccvan Vasavc, Aclvocatc ancl Shri Mukcsh M Shah, I)ircctor o1' thc appcllant, appcarcd on bchall' ol' thc appcllant and rcitcratcd thc grouncls ol' appcal. (). Wc havc carclully havc carclully carclully gonc lhrough ancl considcrcd ancl considcrcd considcrcd thc appcal papcrs,appcal papcrs,papcrs,

¶63

Wc havc carclully havc carclully carclully gonc lhrough ancl considcrcd ancl considcrcd considcrcd thc appcal papcrs,appcal papcrs,papcrs, writtcn subrnissions lilcd by thc appcllant, strbmissions madc at thc timc of pcrsonal hcaring, thc impugncd ruling and othcr matcrials available on rccord.

¶64

Ilcltrrc dwclling on to thc issuc, wc would likc to rcproduce rclcvant portions of circul arlclarification &" thc cxcmption notification lbr casc of rclbrcnc c viz

¶65

lYotificution [',1o. l2/2017-CT^(Rute) duted 28.6.201 7

¶66

(;.^'./?. . (li).-ln e.rercisc q/ thc povt:er.' con.ferrecl bS, sub-,s'ection (l) ql .section I I of the Centrul Goocl,s and Services^'l'ax tlct, 2017 (12 d 2017), the^{('entrul (]otternmenl,} on being s'crlis/iecl that il i,s neces,\ory in the public inlere.yt.;o lo clo, on lhe recon'ttnendations rl the^('otrncil, hereby exempt,s the inlruState supply o.f'services q./ clescription os specified in column (3) o.f the^'l'able below.fi'ont.so much of the c:enlrol lax leviable thereon under sub-section (l) of .yeclion 9 o/ the said lct, as is in excess o.f lhe soid tux calculaled at the rate as .specdied in lhe corresponcling entry in column (4) o./ the said T'able, unles'.s .;trtecifiecl otherv,ise, sub.f ec:l to the relevanl conditions os speci/ied in the corresponding entry in coluntn (5) o/ the saicl'l'able, namely:-

¶67

Tahle

¶68

s/. lVo	Chupter, Seclion, ilettcling, (irou1t ol' Service Cocle ('l'arilfl	I)e.scripliono.[,Services	llale (per cent.)	Conclition
	2	,J	4	5
))	Chupter 99	Pureservices (excludingv,orksconlracl^sentice or othercompositesuppliesinvolving^supply o./ anygoocls)provicletllo lhe Central (]overnmenl, State^(]overnmenlor Union lerritoryorlocalctulhorilyor a^{(]overnmental} irtrelutionto uulhorilttl-nt^y,cr),,r7/un))uL'tit'il))	l\ril	I'{il

¶69

Pagc 4 ot'l0

¶70

¶71

ctnl, fi,rnClion^{enlnr'vlecllo olt61v76:fiqyoluncler} aitic,le 243G o/^{the Con.s'lilulionor in relttt,ionlrt} (tny .function entruslecl lo^{a l4rtniciltctlitlt uncler} urticle 2'l3W ion.

¶72

IYoti^{'ficution l{rt.2/201ry-cr(Rut'e) duted2 s.0l .201 I}

¶73

In the suicl notificalion,^{in the'l-able, -}

¶74

(a)against serial^{nttmber3, in the entry in column (3), a./ier lhe v'ordl; "(t} (]rvern,tenlal Atilhority" lhe v,orc{s^{"or u (}overnmenl linliltt" 's'hctll hc in's'crlec{"} (b)o/ier. .ser.ictl ntrmher 3^{crncl rhc cntrie.v rclating lharclrt, the /bllrtv'ing's'eriul} nttmher ctntl anlria's 's'hull^{ba inserlecl, namel.l' -}

¶75

llula ('ouclit
.-/. Chupler, I )e s' ct' i1'tl i on o.f Su't' i ce's
(1tcr' ion
l{o Seclion,
cenl. )
I Ieucling,
Groult
ot'
Serttice
Code
('l'arifl)
t 2 J, 4 5
,r3l I'iil ,vi/ "
('hu trtt a r Llompo.s ile snppllt r/' goods oncl sart'ice's' in
1 99 tt,hichthe t,ulue o/ .su1tply o./' goocl,s' conslilula.s nol
more lhan 25 per ccnl.o.f'thc t,ulrre q/ lltc.;uicl
compo,sile strpplst prottidecl to tlta ('enlrul
(jot,t,rnrncnl, SlCtle (iOt,ernmenl ot' (,'nion tcrrilot'l'
ot' loctrl tntlhorill,'ot" u (lot'ct'nntenlul itulhorit.l'' or
u (icn,arnrnenl lintitlt blt w(t.) ql un.): ttc'lit'il.1t in
relcttion lo crny.filnclion enlrrt,s'lctl ttt u l'trnc'hultttl
rtnder arlicle 243G ql the Con,stittrlion or in
relcrlion lo any.funclion enlrttstad lo 0 lVluniciltality
ttntler urlic'le 2'l3W of the Con.vliltrlion'

¶76

lYotI ICution Il0.^{l6/2021 -CT (Itate) duted I B.l 1.202 t.}

¶77

In the said notificcrtion,^{in lhe 7'ARI'li,-}

¶78

(i) agcrin5t serial number^{3, in colurnn (3), in lhe heucling "l)e'scriltliortql} Servicc,s", tha^{yyorcl.s "ot'ct (]ot,ernmenlol ctLilhorill)ot'(t ()rtvcrnmenl linlillt"} ,shull be omittecl:

¶79

(ii) again,st sericrl number 3/,^{in colttntn (3), in lhe haacling"l)escriltlionof} Sertticc,;", llte^{v,orcls "or a (iovernntenlalatihorill)or u (ktvernmenllinlillt"} shall be oruilted:

¶80

As is crricicrnt, in tcrms of^{thc scrialntl. 3 ol'notil'rcation No.} t2l2017 -c't' (R),as alttcndcd, purc scrviccs Icxclucling^{works contract} scrviccs or othcr^{compositc scrviccs involvingsurpply o1'anygoodsl, pr'9..vidcd} t, a Ccntral^{(iovcrnrlcnt,Statc (iovcrnmcnt, ljnion tcrritory urlocal} arrthority b,v^waY ol^{any activitY} in rclatior-r to^{ztl-ly lt-tt-tctitltr cntt'ttstcci tcl}

¶81

I)ltsc 5 ttl'l{)

¶82

¶83

a Panchayat undcr articlc 243G or to a Municipality undcr articlc 243W o1' thc Constitution ol'lndia, is cxcrnpt. Likcwisc, in tcrms of scrial no.3A of' notilication ibid, compositc supply of goods and scrviccs, in which thc valuc ol' supply of goods constitutcs not morc than 25% of'thc valuc of' thc saicl compositc supply providcd to thc Ccntral^(iovcrnmcnt, Statc (lovcrnrrcnt or LJnion tcrritory or local autl-rority by way ol'any activity irr rclation to any lurnction cntr'usLcd to a [)anchayat undcr article 243G or to a Mr-rnicipality undcr articlc 243W ol'thc C'onstitution arc excrnpt.

¶84

Whilc dcaling with an cxcmption notihcation, wc arc mindlul of thc Iact that an cxcmption notification is to bc strictly intcrprctcd in tcrms of thc judgcmcnt of'thc Constitution Ilurch o{'thc IIon'ble SC in thc casc o1'I)ilip Kumar and Cornpany 1201U(36I )lll'l' 577 (SC) I whcrcin it was hclcl as lollows Irclcvant cxtracts l:

¶85

"52.^'l'o .s'r.tnt t.t[), t,t)e uns'y)er tlt.c t'c.f et'anca holdin,q u,s' under

¶86

(l) lixatntrttion noti.ficuliott ,s'ltoulcl be interltrctecl stricllt,; thc burclen of proving utrtplic'ubilitlt woulcl be on /he^(r.\sessee lo shov, that hi.s ca,se comes vtilhin lhe purame:er,s' of' the cxemption clctuse or exemplion nolificution. (2) [,Vhen there i.s umbigLtillt i71 exemplion rtotification v'hich is .sub.fecl to stricl inlerpreluliott, the bene.fit ql .such urnbiguity cannol be claimed by the ,s'ubfect/assessee untl it musl be inlerpreted in.fhttour t{ the revenue. (3) T'he ralio in Sun lixpor"l case (supra) is nol correcl and all the clecision.v yvhich look similar view as in Sun lixport ca.se (supra) stands overruled. "

¶87

Kccping thc abovc in mind, WC movc on to thc hrst clucstion on rvhich thc appcllant has sought ruling in rclation to scrviccs providcd to thc (il)SSI] ie whcthcr thc scrviccs providccl to thc I)anchayat Scrvicc lJoarcl, rclatir-rg Lo l)rinting ol'clucstion papcr and OM[{ shcct having scrial nulrbcring and barcodc, whcrcin lhc scopc ol work rclatcs to composc, typcsct,^print, pacl<, transport and supply scalccl Qucstion Papcrs/OMlt) and ICI{/OCR/OMI{ scanning, arnounts to scrviccs providcd to thc Panchayal, and^{is covcrcdundcr'} cntrics 3 and 3A, o{'thc notillcation and is hcncc,^{cxcmptcdlrom GS'l'.}

¶88

'l'hc I-rndings o1'GnnR arc alrcacly mcntioncd supra and is not bcing rcpcatcd fbr tl-rc sakc o['brcvity.

¶89

Pagc 6 o1' l0

¶90

¶91

1 5. Local authority^{is dcfincd unclcr scctirtn 2(69), ibid,as undcr}

¶92

(69) "locul aulhorilY"^meuns- (ct) ct^{,,lrcrnc:hctltat"} a.\ rle/inecl^{in clause (ct) cll arlicla213 o/ tha ()rttt's'lilttlirtrt"} (b) a,,l,luniciltcrlitst"^{us clefinedin clau,re (e) oIurticle2']31'rtf'the ()on's'lilttlitttt"} (c) cr Municipcrl Comntitte::e,^{a /ilta Pcrrishacl,a Districl lJocrrcl, unclany olher} cr,thoritlt legull;t^{entitlecl lo, or enlrusleri by lhe Cenlrcrl (iovernntenlor"uny Slulc} (]'vernmenl vtilh the conlr.ol or nxanagen'tenl^{of u mtmiciltul rtr locul.filndI} (d) cr Cantonntent^{lJour.clas rte[ined in section3 o/ the Cantonment,s Act, 2006(1 I q/} 2006), (u) a llegional Council^{ur a Districr Council constituted underthe Sixth Schedule to} lhe Conslilttlion:

¶93

(/) a Det,elopntent^{Bocrrri constittrlerlunrlerarticle 371 land article 37 i'll o/ the} Cttnslitttlion;^or

¶94

(g) o llegional Council^{constituted tmder arlicle371/ o/ the Cott'slilttlion'}

¶95

pancha yat, as clcfinccl undcr Articlc 243(cl)^{nI thc Constitr-rtion of'}

¶96

India, statcs^{as unclcr:}

¶97

(ct)^'. lrctnchctltul"^{mecrn.'ut1 in,s'lilulion('h.1; t,t'halat,er n(tma cullatl) o/ .s'cl/'g,ovarntnenl} constitr,tlerl^{Lrncler urlicle 2-l3l),} fbr^{the rural are0,;}

¶98

'l'hc appcllnnt has rclicd on thc dcflnition o{''local authority'^u/s 3(3 l) of-thc^{(icncralClauscs Act, and {urthcr statcd that thc GI'}SSI}has bcen} cstablishecl in^{tcrms of sccti on 235 of thc Guj arat PanchayatAct, 1993; that a} conjoint rcading^{ol'scctions74, 227(5),235(6 &. 7),2J4,ibid, rcvcalsthat} GpSSI] is^{an intcgralpart o1'PanchayaLsystcm & thcrclorca'local authority'} ancl hcncc is cligiblc^{lor thc bcnct.rt of sr. no .3 &.3A ol'thc'notificati on, ibicl'</sup>}

¶99

Sirrcc:, thr:^{scr'\i iccs rcnclcrcd to (ll'SSl] al'c cotTlpositc scrviccs,} lg. what ncccls to^{bc cxanrincclis whcthcr thc appcllant is cligiblc lbr Sr. No' 3'A} ol rhc notification,^{ibict. lior bcing eligiblcfor Sr. No.3A of thc notification,} thc appcllant^{has to satisly thc ftrllowingviz}

¶100

. that thcrc has to bc a compositc^{supplyof goocls& scrviccs;}

¶101

. that lhc valuc ol' supply ot'^{goods constitutcs r-rot rtorothan 25(%of thc valucrll'} thc compositc^suPPlY;

¶102

. that thc scrviccs arc proviclcd^to thc^{Ccntral(iclvcrntncnt,Statc (iclvcrnmcnt.} lJnion tcrritorv or^{localzruthority;}

¶103

t y wa), oi' any^{activity in rclation 1o an1' litt-tctitltt ciltrustcdto a}

¶104

o l)anchaval utrdcr^{etrticlc243(i}

¶105

lu{r-rnicipalitl,^{r-urclcr articlc 243W ol'thcConstittttiot-t tll'Irrdia.}

¶106

Now, GI)SSI] is^{ncithcr a Ccntral/Statc(lovcrntrcntnor a [Jniorl} tcrril"ory.liurthcraslarasl,rscctlaul,hrtritl,isconccrtrccl,thctcrmhavingbccn clcflrncd unclcr thc C(iS'['Act,^{thcrcappcars to bc no nccd to borror'v it lrom} clscwhcrc. On^{going through cach of tl-rc clauscs lrotr 'a' to,!g' tl('thc '}

¶107

. , :i

¶108

' I'agc 7 . t>[:l o ,.", ,;

¶109

¶110

¶111

dclir"rition ol'local authority, rcprocluccd supra, wc lind that thc GPSSI] docs not lall within thc anrbit ol'cithcr ol'thc sub-clauscs.^'l'hus, GPSSB is ncithcr a Ccntral^(iovcrnmcnt, Statc^(iovcrnmcnt, lJnion'l'crritory or a local authority.^'l'hc prirnary condition ol' thc cornpositc scrviccs having bccn providcd [o a Ccntral^(]ovcnrrcut, Statc^(iovcrnmcnt, tinion tcrritory or local authority, not having bccn satisficd, thc appcllant is not cligiblc lor thc bcncfit ol' thc notification. Wc thus concur with thc finding of thc GAAII . Irvcn othcrwisc, nothing is proclr-rccd by thc appcllant, cornpclling us to intcrl'crc with thc lindings o1-thc irnpugncd ruling.

¶112

Moving on to [hc sccond clucstion on wl-rich ruling is sought viz, whcthcr thc scrviccs providccl to thc^(iujarat I'}ublic Scrvicc Comrnission I^GI)SC I^{rclating tolCIf/OCR/OMI{ scanning scrviccs, capturing ancl} gcncration ol'soli clal"a, linl<up o{'soli data with prc-cxarnination data, rcsult proccssing ol cxamination and prcparation o{'various rcporls, post cxamination scrviccs amounts to scrviccs providcd to thc Statc^(iovcrnmcnt, covcrcd undcr cntrics 3 and 3A o['thc Notification and cxcmptcd fiom GSl'?

¶113

T. 'l'hc linclings of GAz\lt on this clucstion, is alrcady mcntioncd sLrpra and is nol bcing rcpcatccl [br thc sakc o['brcvity.

¶114

'l'hc appcllant's contcntion in this rcgard is that that GPSC, a constitutional body having its own idcntity is 100% controllcd, linanccd & rranagcd by thc State^(iovcrnmcnt & hcncc is liablc to bc classificd as 'State (]overnmenl'; that thc work donc by thc appcllant is highly confidential in naturc, scnsitivc &. rccluircs accLlracy; that thc agrccmcnt pcrlaining to rcsult proccssing work is ignorcd; that thc post cxarnination rcsult work is 'purc SCTVI CCS

¶115

23 . 'l'hc tcrnl 'Statc Govcrnmcnt' has not bccn dcfincd undcr thc CGS'I' Act, 2017. Ilowcvcr, undcr thc Gcncral Clauscs Act,^{1897, thc tcnr-r} stands dcfincd , viz

¶116

(60)^" State^{(]overnmenl",}

¶117

(a) as respect,s anltthing done be/bre the commencement^{o.f'the Constitution,} shalt mean, in o Part tl State, the^{Provincial(]overnmenl ofthe}

Pagc 8 of'10

,.. : _.; .!

correspon(ling^{ProYince,inct} Part tl Slule, lhe^{authorilyor per'\on} aulhorised al^{lhe releYanldale} to exercise^{execttlitte governmenl in the} anrl in^(t Parl^{CStale, the Central} corre,tponcling^{tlcceding Stale,} (]overnntenl,'

¶123

(b) 'and as respecls anything^done lq/ier^{the crtmnxencemenlo./'the Con'slitt'rtion} he/oie the^{commencementif'tt n Constilulion (Settenth Amendntenl)'tlcl,} 19561 , sh,ll^{n,tectn, in a Part istate, lhe (]ot'e,nor, in a l'ar^t ll slcrte'the} llcriprcrntukh,^{ctncl in u PorlC State,lhe ('enlrul (]otternmenl"}

¶124

l(c)^{crs re,;pecl.sctnlllhingclone or lo l'te tlone trliar lht: t"tttttrnenL'emettlof tha} (',n.rliltrli,, (Sct,crrlh ,tlntenclntertl) tlcl,^{1956, s'hcrll maLtn, in cr} '\ltrlc'^tha (iot,ernor, and in u l.,lnion lerrilot"y, lhe^{('enlrul (iottct'tttnenl''}

¶125

anrl shctll, in^r.elcttionlo flrnclions^{enlrus'teclunclercrrliclc 258/ o/ thc (lon'stilttlittrt} I, lhe^{(irn,ernntento.f'Inclict,inclurlelhe Cenlrol (lot,ernntenl uctingwilhinlhe '\c'opa} o1 the uttlhoriltt^{git'en to it trnder lhcrl urliclef}

¶126

Aftcr having^{gonc tl-rrourgh thc clcfinitionsupra, wc do not agrccwith thc} contcntion o[ thc^{appcllarrtthat GPSC, a constitutional bocly,managccl,} l,inanccd by the^{Statc (iovcrnnlcnt, which has IOO% cot-ttt'ol, is liablc to bc} classiflccl as thc^{Statc (iovcrnrncnt.Wc, thcrc[brcconcLrr with thc llndingol'} thc GAn I{, that^{thc appcllernt is not cligiblc lirr thc l'rcnclit of'thc cxcrl'lptiorl} notillcati on,^{ibicl, in rcspcct ol'thc scrviccs proviclccl to (il'}SC.}

¶127

't'hc Appcllant has rclicd upon thc juclgcmcnts in thc casc^of' Ajitsingh,^{'l'hc Itajasrhan Statc Irlcctricity Iloard & I{ C Jain, ibid. On going} through thc^{judgcrncnts,\/e obscrvc as undcr:}

¶128

lalAjitsingh^{vs srarc ol'punjabIAII{ 1967 tl56l*hgrr:i11 thc appcal by spccial lcavc} was lilccl bcforc^{thc ilon'blcSC againstthc.juclgmcnto1- thc Punjab IIigh (lourt} dismissi.g a^{pctition l-rlccl by thc appcllantunclcr r\rticlc 2)6 t>l'thc Constittttiou,} pray,i,g that thc schcnrc^{,rl .u,-,r,llidationol' r,illagc l{opalon. 'l'ahsil slanrrolzr'} I)istrict Lr.rtlhiiura.^{b'cc1l-rrtsltccl'}

¶129

ll",l^{'l'hc I{a.jasrSapSrarc l;lcctricityIkrarcl11961 (i)51ll{ 377i|" 'l'hc l:lcctricitl'} Iloarcl tll' ItajasLhan.^{tilcclthis appcal bclorc thc Ilon'blc S(. whct'cin bclorc thc} II.r-r'blc l{a.iasthan^{II(., tlrrc ol'thc gruluncivvas that thc Iloitt"clctlulci nott"rc hclcl to ["rc} ,,Statc,,as clcllncti in z\rticlc l2 ol' thc (lor"rstitr-rtiun ol'Inclia. I'hc IIon'blc Suprcttlc Court hcld that^{l.hc lloalcl u,as clcarlyan authority to whicl'r thc provisions ol'l'}artIll} o l' thc Constitr-rtion^{rvcrc applicablc'}

¶130

Icl^{It (] .lain} IAII{^{lgtil s(t 9511. 't'hc clucstion ftrr considcration in this mattcr was} r.vhcthcr I)clhi^{I)crzcl<tpnlcntAuthority is a'local Authority'.'l'hccxprcssiotl'l'<lcal} Ar:tSority' not having^{bccn clclincd ir-r tho paytnctrtol'llonurs,z\ct,rccollrsc was} takcn to^{(]cncralClauscsAct, to asccrtainthc mcatning o1- tl-rc cxprcssion. 'l'hc} I Ior-r,blc SC tipally^{hclcl that thc I)clhi l)cvcloprncnt Ar-rthorit)'is a Local Authority} a,ci thcrclilrc.^{thc jrnrvisior-r o1'thcl)aymcntol'llonus Act arc ntlt etttractcd'}

¶131

.\s is c'iclcnt, thc^{liicts bcins totall),.lil'l'crcnt, thc rcliarlcc ttl tl-ris casc is ttot} tc,ablc. lir-rrthcr-.^{llic tcrm local authority having bccn clcllncci t-tnclct'iilc('( iS l'}

I)ag1c 9 ot I{l

! !-.

.jll\

Act, 2017 , as is alrcady mcntioncd ^\upra, thcrc is no nccd to borrow thc nrcaning of thc tcrm {iom anothcr Act.

¶137

In vicw ol' thc abovc findings, wc rcjcct thc appcal 1l lcd by appcllant M/s. I)ata Proccssing Irorms P Ltd., against thc Advancc I{uling No.. G[JJ/GAAI{/R/2022143 datcd 28.9.2022 passcd by thc GujaraL Authority {br A civancc ltul ing.

¶138

u
( If a.iccv'l'opno )
Mcm bcr (SGS'l')

¶139

(BVSi 2t Naga Ku ma ri) Mcmber (C(;S'I')

¶140

¶141

Placc: Ahmcdabad [)atc . zLjl .2025

¶142

I)agc l0 ol' l0