Page 164 - GSTL_23rd July 2020_Vol 38_Part 4

530 GST LAW TIMES [ Vol. 38
HP imaging oil, blanket web and other machinery products by the Appellant to
its customers is ‘mixed supply’ and not the ‘composite supply’, as being claimed
by the Appellant.

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2020 (38) G.S.T.L. 530 (App. A.A.R. - GST - Mah.)

BEFORE THE APPELLATE AUTHORITY FOR ADVANCE RULING
UNDER GST, MAHARASHTRA
Smt. Sungita Sharma and Shri Rajiv Jalota, Members
IN RE : ORDNANCE FACTORY, BHANDARA

Order No. MAH/AAAR/SS-RJ/13/2019-20, dated 18-10-2019
in Appeal No. MAH/GST-AAAR-13/2019-20
1
Central Government - Scope of - Appellant functioning under the De-
partment of Defence Production, Ministry of Defence, Government of India,
and all its activities including administrative, executive, etc. carried out for and
on behalf of the President of India - Further, signatures on the supply order
placed to the Vendors, Acceptance of the Tender, etc., clearly exhibits that all
these executive works carried out in the name, and on behalf of the President
of India - Consequently, Ordnance Factory Bhandara, the Appellant, is noth-
ing but ‘the Central Government’ in accordance with the provision of Section
2(53) of Central Goods and Services Tax Act, 2017 read with clause (8) of Sec-
tion 3 of General Clauses Act, 1897 read with Articles 53 and 77 of Constitution
of India. [para 51]
Exemption from GST - Services supplied by Central Government -
Appellant, having been established as ‘Central Government’ supplying the
services of tolerating the non­performance of a contract against the Liquidated
Damages and security deposit forfeited by the suppliers, covered under Sr. No.
62 of Exemption Notification No. 12/2017-C.T. (Rate) attracting Nil rate of GST
- Hence, GST will not be applicable to (a) Liquidated damages deducted from
the payments to be made to suppliers in case of delayed delivery of goods or
services, and (b) Amount of Security deposit forfeited by suppliers due to non-
fulfillment of certain contract conditions. [para 54]
Services supplied by Central Government - Exemption from GST -
Food and beverages supplied at industrial canteen inside the factory premises
- Alcoholic drinks not served in the industrial canteen nor is the industrial
canteen air-conditioned - Nominal charges for such food and beverages recov-
ered from the employees on no profit basis - Such industrial canteen run by
the factory itself and no outdoor caterer involved in providing services related
to supply of food and beverages - Thus, such supply of food and beverages by
the factory to factory employees inside the industrial canteen falls within the
category of ‘services’ as per clause 6(b) of Schedule-II to Central Goods and
Services Tax Act, 2017 - Supply of services by Central Government to factory
employees, who are in the nature of non-business entities, charges recovered

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1 On appeal from 2019 (26) G.S.T.L. 423 (A.A.R. - GST).
GST LAW TIMES  23rd July 2020  164