All appeals are dismissed.

Costs of appeal shall be borne by each party.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. Plaintiff’s ground of appeal

A. Article 2(1)1 of the former Value-Added Tax Act (amended by Act No. 9915, Jan. 1, 2010; hereinafter the same) provides that “a person who independently supplies goods or services for business regardless of whether it is for profit” is a person liable to pay value-added tax. Article 2(2) provides that the person liable to pay value-added tax includes the State or a local government.

Meanwhile, Article 12(1)17 of the former Value-Added Tax Act provides that the value-added tax shall be exempted for goods or services supplied by the State or local governments prescribed by the Presidential Decree, and Article 38 of the former Enforcement Decree of the Value-Added Tax Act (amended by Presidential Decree No. 22043, Feb. 18, 2010) provides that real estate rental business supplied by the State or local governments under subparagraph 3 of Article 38 of the former Enforcement Decree of the Value-Added

Where the State or a local government entrusts a certain organization with the management of facilities, etc. and allows it to use or profit from facilities, and the organization supplies goods or services to a third party in its name and on its account, the State or the local government is not directly supplied goods or services to a third party. Therefore, it cannot be deemed that the State or the local government is engaged in the tax-free business under Article 12 (1) 17 of the former Value-Added Tax Act, and it shall be deemed that the organization provides real

In addition, the value-added tax is levied unless it is paid for the supply of real estate rental services by the State or a local government as an independent supplier of business, and the related input tax amount is deducted.