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Drainage of channels and riverbeds is an exempt supply

Shanti Prime Publication Pvt. Ltd.

Classification of Supply — In the instant case, The Irrigation and Waterways Directorate, Govt of West Bengal has awarded the Applicant a contract for resectioning of river Jamuna from the upstream of Charghat Bridge to the downstream of Ghonja Haspur Bridge in Block and P.S Swarupnagar, Habra - 1 and Gaighata in North 24 Parganas. The Applicant seeks a ruling on whether an exemption under Sl.No.3 or 3A of Notification No.9/2017-Integrated Tax (Rate) dated 28/06/2017 (hereinafter the Exemption Notification), as amended from time to time, applies to the above supply.

Held that— The recipient is engaged in the development of irrigation and waterways, which includes activities in relation to the function listed under Sl No. 5 of the Eleventh Schedule, and, therefore, entrusted to a panchayat under Article 243G of the Constitution of India. The recipient certifies that the work awarded to the Applicant, involving drainage of channels and riverbeds, is an activity undertaken in relation to the function referred to above.

The Applicant’s service to the recipient, therefore, is exempt under Sl No. 3A of the Exemption Notification. — Arihant Dredging Developers Private Limited, In Re…. [2019] 13 TAXLOK.COM 004 (AAR-WB)