Appeal against AAAR order — Whether ASSET examination is exempted from payment of GST –— The petitioner prayed for order quashing the impugned order dated dated 07.09.2021 passed by the Gujarat AAAR; for declaring that the services provided by the petitioner to school/educational organization in relation to ASSET examination is exempted from payment of GST under Entry No.66(b)(iv) of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. The writ-applicant sought an Advance Ruling in this regard. The AAR held that exemption is available in respect of ASSET services provided to educational institution. The department challenged the AA Ruling. The AAAR allowed the appeal and held that ASSET is not covered within Entry at Sr. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, hence not exempted from payment of GST. The court observed that the question papers are set by the applicant and the answers given by the students are assessed by them.  An exemption provision should be liberally construed in accordance with the object sought to be achieved if such provision is to grant incentive for promoting education or otherwise has some beneficial reason behind it. The exemption notification must be construed having regard to the purpose and object it seeks to achieve. The notification in the case on hand should be read as a whole. The impugned order passed by the AAAR is not sustainable in law.

Held that:- The Hon’ble High Court allowed the application and quashed the impugned order passed by the AAAR.