Page 166 - GSTL_23rd July 2020_Vol 38_Part 4

532 GST LAW TIMES [ Vol. 38
Input Tax Credit - Input service - Shops given on rental basis for
commercial purposes - Commercial lease rent recovered from tenants of such
shops on which GST is collected by Ordnance Factory Bhandara - Input Tax
Credit related to such services in relation to such shops admissible, such ex-
penditure being directly related to the business of renting of immovable prop-
erty - Section 16 of Central Goods and Services Tax Act, 2017. [para 96.1(ii)]
Input Tax Credit - Input service - Inter-connected roads between vari-
ous establishments and factory premises - Construction and maintenance of
roads in the factory estate mandatory for the Appellant to carry out their busi-
ness operation, such roads being necessary for transportation of inputs, capital
goods, and finished products of the Appellant - Accordingly, expenditures in-
curred on the construction and maintenance of road from factory’s main gate to
factory premises where manufacturing activities take place is eligible for ITC
as per Section 16(1) of Central Goods and Services Tax Act, 2017, since the
same is incurred on input services, which are used in the course or furtherance
of business - However, construction and maintenance of roads within the resi-
dential complex of the factory estate being in relation to supply of the accom-
modation facility to employees in the residential colony maintained by Appel-
lant, which are an exempt supply, therefore, ITC in respect of such expendi-
ture not available in accordance with the provision of Section 17(2) of Central
Goods and Services Tax Act, 2017. [para 96.3]
Input Tax Credit - Input service - Maintenance of land currently not
used for any purpose - ITC available in respect of expenditure incurred on the
maintenance of such unused land in the factory estate, being essential for
keeping the factory surroundings bacteria free, and keeping the roads adjacent
to such lands commutation worthy, which is important for smooth business
operation of the Appellant - Section 16 of Central Goods and Services Tax Act,
2017. [para 96.4]
Input Tax Credit - Input service - Medicines purchased by hospital and
expenditure on maintenance, upkeep and other activities relating to such hos-
pital - ITC available in respect of all inputs like medicines, equipment, furni-
ture, etc. consumed in hospitals and input services like maintenance and up-
keep of hospitals, etc., to provide health services to its employees and their
dependents as per the terms of Ordnance Factory Medical Regulation, which
may be construed as the law for the time being in force as mentioned in
amended Section 17(5)(b) of Central Goods and Services Tax Act, 2017 vide
Section 9 of Central Goods and Services Tax Amendment Act, 2018 w.e.f. 1-2-
2019. [para 98]
Input Tax Credit - Input service - Maintenance and upkeep of guest
houses - Appellant charging rent from guests availing the guest house facili-
ties, which may be considered as exempt supply in terms of Sr. No. 6 of Notifi-
cation No. 12/2017-C.T. (Rate), dated 28-6-2017, Appellant having been held to
be ‘Central Government’ - ITC not available against the said exempt supply in
terms of the provision of Section 17(2) of Central Goods and Services Tax Act,
2017. [paras 102, 103]
Input Tax Credit - Input service - Purchase of LPG cylinders used
within Industrial Canteen - Appellant’s activities of the supply of food and
beverages at the industrial canteen inside the factory premises being an ex-
empt supply in terms of Sr. No. 6 of the Notification No. 12/2017-C.T. (Rate),
ITC in respect of the LPG cylinders used in the factory canteen of the Appel-
GST LAW TIMES  23rd July 2020  166