Classification of service- In the instant case, the applicant have been awarded a works contract for Construction of Fire Station and Staff Quarters in the Surat Municipal Corporation.

Question on which Advance Ruling sought is as follows:

Whether the activity of composite supply of works contract service by way of construction of Construction of Fire Station And Staff Quarters at T.P.S NO - 42 (BHIMRAD),F.P NO-65, in SWZ(A) at Bhimrad, Surat, for the Surat Municipal Corporation and as detailed in Work Order-North Zone/Out/879 dated 26.02.2019 entered in to by the applicant supplier and the said local authority recipient i.e. Surat Municipal Corporation, merits classification at Serial Number 3(vi)(a) of Notification Number 11/2017 – Central Tax(Rate) dated : 28.06.2017 (hereinafter referred to as the said NT) , as amended from time to time and last amended by Notification Number 21/2012-Central Tax(Rate) dated 31.12.2021 w.e.f. 01.01.2022?

Fire services is a matter listed in twelfth schedule of our Constitution and thereby a function of the Municipal Corporation. Thereby we find this activity undertaken by Surat Municipal Corporation out of the purview of business, as described at sr. no 3(vi)(a) of Notification no. 11/2017. Also, supply of Staff Quarters is covered at 3(vi)(c) of said Notification no. 11/2017.

A fire station will be used for fire services function as envisaged in schedule twelfth of our Constitution and cannot be considered a commercial building.

Held that- The activity of Construction of Fire Station and Staff Quarters merits entry at Sr No. 3(vi)(a) of Notification No. 11/2017