The Andhra Pradesh Appellate Authority of Advance Ruling ( AAAR ) has ruled that the transaction of hiring/leasing of buses by APSRTC to the Public Transport Division of Government of Andhra Pradesh is eligible for the exemption under Entry 22.
The Government of Andhra Pradesh had taken up the process of merger of establishment of APSRTC with the state Government and creates the Public Transport Department under the administrative control of Transport Roads and Buildings Department and declared the Public Transport Department under the administrative control of Transport roads and Building Departments as Head of the Department. Subsequently, the state government decided to take all the buses establishment and infrastructure on lease, so that the total public transport can be undertaken by the Government of Andhra Pradesh directly, through the PTD. In connection with the above backdrop, the applicant approached the Authority of Advance Ruling seeking clarification that such leasing of buses is eligible for exemption under Entry 22 and AAR decided it is eligible for exemption, hence, Appeal filed on AAAR.
A coram of Sri Suresh Kishnani and Sri S Ravi Shankar Narayan has ruled that in the instant case the Provider and the recipient of the transport service are two different entities. And the they further stated that where a service is capable of different treatment for any purpose based on its description, the most specific description shall be preferred over a more general description. And they confirmed and uphold the AAR.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
