Page 165 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : ORDNANCE FACTORY, BHANDARA 531
by factory from such employees for such supply attracts ‘NIL’ rate of tax as per
Notification No. 12/2017-C.T. (Rate), dated 28-6-2017. [paras 56, 57]
Services supplied by Central Government - Exemption from GST -
Community hall provided on rental basis to employees of the factory - Appel-
lant, being ‘Central Government’ providing services of renting of immovable
property to its employees, which are non-business entities, hence such services
rendered by Appellant will not be subject to GST in accordance with the pro-
visions of Sr. No. 6 of Notification No. 12/2017-C.T. (Rate). [para 59]
Services supplied by Central Government - Exemption from GST -
School bus facility provided to the children of the employees - Charges in
terms of monetary consideration recovered by the factory from its employees
in lieu of such service (Factory Bhandara) being “Central Government” and
the recipient of services (factory employees) being non-business entities, such
services provided by Ordnance Factory Bhandara attract ‘NIL’ rate of tax in
view of Sr. No. 6 of Notification No. 12/2017-C.T. (Rate). [para 60]
Services supplied by Central Government - Exemption from GST -
Conducting exams for various staff vacancies in the factory - Fees collected
from candidates who wish to appear in such examinations - Provider of service
(Ordnance Factory Bhandara) being “Central Government” and the recipient
of services (candidates) being non­business entities, such services provided by
Ordnance Factory Bhandara attract ‘NIL’ rate of tax in view of Sr. No. 6 of
Notification No. 12/2017-C.T. (Rate). [paras 62, 63]
Input Tax Credit - Input service - Maintenance of garden inside factory
premises - Mandatory condition imposed by Maharashtra Pollution Control
Board to maintain quality of ambient air & prevent air & water pollution -
Garden Maintenance service qualifies as ‘input service’ as per Section 2(60) of
Central Goods and Services Tax Act, 2017 and also considered to be “used or
intended to be used in the course or furtherance of business” as per Section
16(1) of Central Goods and Services Tax Act, 2017 and Input Tax Credit availa-
ble in respect of expenditure done on such services. [paras 94, 95]
Input Tax Credit - Input service - Maintenance and upkeep activities
relating to gardens, parks, playground, factory school for children of employ-
ees, hall for recreational activities, residential quarter buildings of employees,
roads, footpaths, street lightings and other parts of estate area that are located
outside the factory premises but within the factory estate - Appellant charging
rent/consideration from their employees for providing accommodation facility
in the residential colony maintained by it, which renders the said activity of
the Appellant as supply of residential services, an exempt supply in itself in
terms of Sr. No. 12 of Notification No. 12/2017-C.T. (Rate) - Further, Education
services provided by factory school to the children of employees, renting of
recreational halls to employees for organizing some family functions against
certain considerations being exempt supply any inputs or input services viz.
maintenance, upkeep, repair, providing security, garbage collection, sewage
treatment, civil construction, sweeping and cleaning, etc., pertaining to the res-
idential quarters of employees of Ordnance Factory Bhandara and other allied
organisations, market area, places for worship of God, gardens, parks, play-
grounds, swimming pool, footpaths, street lightings, which are used inside the
residential colony not available to Appellant for ITC in accordance with the
provision of Section 17(2) of Central Goods and Services Tax Act, 2017. [para
96.1]
GST LAW TIMES  23rd July 2020  165