Since, not clarified above, I presume the exemption is claimed under Para 12 of the Notification No.25/2012-ST dated 20 June 2012, wherein the exemption is claimed on such WCT services provided to Government, Local Authority or Governmental Authority.
Firstly, ‘Government’ has not been defined under the Finance Act, 1994 (Service Tax Law). Therefore, we derive the meaning of the term from the ‘The General Clauses Act, 1897’ wherein Government means Central Government, State Government, Government of Union Territory and the Departments created thereunder. Hence, in my opinion, TNEB, being a Board, would not be Government.
The definition of the term ‘Government Authority’ is as under –
“2(s) “governmental authority” means an authority or a board or any other body;
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by Government,
with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution;
The Article 243W prescribes for the following functions –
1. Urban planning including town planning.
2. Regulation of land-use and construction of buildings.
3. Planning for economic and social development.
4. Roads and bridges.
5. Water supply for domestic, industrial and commercial purposes.
6. Public health, sanitation conservancy and solid waste management.
7. Fire services.
8. Urban forestry, protection of the environment and promotion of ecological aspects.
9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.
10. Slum improvement and upgradation.
11. Urban poverty alleviation.
12. Provision of urban amenities and facilities such as parks, gardens, playgrounds.
13. Promotion of cultural, educational and aesthetic aspects.
14. Burials and burial grounds; cremations, cremation grounds; and electric crematoriums.
15. Cattle pounds; prevention of cruelty to animals.
16. Vital statistics including registration of births and deaths.
17. Public amenities including street lighting, parking lots, bus stops and public conveniences.
18. Regulation of slaughter houses and tanneries.
Therefore, if the TNEB board is primarily established to provide any of the above services and is covered under any of the clauses as prescribed under the definition of ‘Governmental Authority’, your services should be exempt.
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