Page 167 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : ORDNANCE FACTORY, BHANDARA 533
lant not available in terms of Section 17(2) of Central Goods and Services Tax
Act, 2017. [para 107]
Input Tax Credit - Proportionate Input Tax Credit whether to be re-
versed in cases where lesser payment is made to the supplier due to deduction
on account of liquidated damages from supplier’s dues - Deduction of Liqui-
dation Damages from the dues of suppliers on account of delayed delivery of
goods or services has no bearing, whatsoever, on the actual taxable amount
and GST leviable thereon mentioned in the tax invoices, transaction related to
liquidated damages being separate from transaction of receipt of the goods or
services - Two separate accounting codes, maintained by Appellant, one for
the receipt of goods and another for deduction of L.D. from the suppliers’ due,
therefore, Appellant is paying the actual taxable amount and GST thereon to
its suppliers, as mentioned in the tax invoices raised by its suppliers - Conse-
quently, appellants not required to reverse the ITC on account of the deduc-
tion of liquidated damages from the payment made to the suppliers. [paras 111,
112]
Supplies by Central Government - Appellant Ordnance Factory,
Bhandara, being a part of the Ministry of Defence, Government of India, held
to be ‘Central Government’ hence, following notifications applicable to them :
(a) Notification No. 2/2018-C.T. (Rate), in relation to services by an arbitrator or
an advocate to our organisation, (b) Notification No. 3/2018-C.T. (Rate), in rela-
tion to services supplied by our organisation by way of renting of immovable
property person registered under the Central Goods and Services Tax Act,
2017, (c) Notification No. 36/2017-C.T. (Rate), in relation to payment of tax on
reverse charge mechanism on sale of used vehicles seized and confiscated
goods, old and used goods, waste and scrap to a GST registered person. [para
115]
Appeal allowed
CASES CITED
Coca Cola India Pvt. Ltd. v. Commissioner — 2009 (15) S.T.R. 657 (Bom.)
= 2009 (242) E.L.T. 168 (Bom.)— Relied on ................................................................................. [Para 74]
Commissioner v. Bajaj Hindustan Ltd. — 2015 (40) S.T.R. 379 (Tribunal) — Distinguished ..... [Para 96]
Commissioner v. Hindustan Zinc Ltd.
— 2009 (16) S.T.R. 704 (Tribunal) — Referred ........................................................ [Paras 100, 101, 102]
Commissioner v. ITC Ltd. — 2013 (32) S.T.R. 288 (A.P.) — Distinguished ................................... [Para 96]
Commissioner v. Suzuki Motorcycle India Pvt. Ltd.
— 2017 (47) S.T.R. 85 (Tribunal) — Relied on ............................................................................. [Para 89]
HCL Technologies Ltd. v. Commissioner — 2015 (40) S.T.R. 369 (Tribunal) — Relied on ............ [Para 86]
ISMT Ltd. v. Commissioner — 2015 (40) S.T.R. 596 (Tribunal) — Referred................. [Paras 100, 101, 102]
L’Oreal India Pvt. Ltd. v. Commissioner
— 2011 (22) S.T.R. 89 (Tribunal) — Relied on .................................................. [Para 96.3, 100, 101, 102]
Lifelong Meditech Ltd. v. Commissioner — 2016 (44) S.T.R. 626 (Tribunal) — Relied on ............ [Para 87]
Mangalam Cement Ltd. v. Commissioner
— 2016 (44) S.T.R. 422 (Tribunal) — Distinguished ............................................................... [Para 96]
Mukand Ltd. v. Commissioner — 2016 (42) S.T.R. 88 (Tribunal) — Relied on ............................... [Para 85]
Orient Bell Ltd. v. Commissioner — 2017 (52) S.T.R. 56 (Tribunal) — Relied on ............................ [Para 88]
Rane TRW Steering System Ltd. v. Commissioner
— 2018 (11) G.S.T.L. J187 (Mad.) — Relied on.............................................................. [Para 84, 94, 116]
Reliance Industries Ltd. v. Commissioner
— 2016 (42) S.T.R. 457 (Tribunal) — Distinguished ............................................................... [Para 96]
GST LAW TIMES  23rd July 2020  167