Page 172 - GSTL_23rd July 2020_Vol 38_Part 4

538 GST LAW TIMES [ Vol. 38
ated by the Constitution of India as a legislative, executive or judicial authority of
the country.
40. On perusal of the above, one of the moot issues, before us, is
whether the Appellant, i.e. Ordnance Factory Bhandara, can be construed as “the
Central Government” in light of the various legal provisions and documentary
evidences, relied upon by the Appellant.
41. The Appellant challenged the aforesaid observation made by the
Advance Ruling Authority by putting forth the following contentions :
42. As regards the advance ruling observation inasmuch as Ordnance
Factory Bhandara is not “Government” since it is not created by Constitution of
India as a “legislative, executive or judicial authority” of the country, it was con-
tended by the Appellant that AAR, Maharashtra did not take cognizance of the
fact that the Constitution of India need not “create” the organisations intended
for functioning of the country. They further submitted that the Constitution only
lays down the framework demarcating fundamental political code, structure,
procedures, powers, and duties of government institutions and sets out funda-
mental rights, directive principles, and the duties of citizens. They further argued
that the responsibility & decision of formation of organisations like Ordnance
Factory Board & the associated Ordnance Factories under the Board is of the Un-
ion Government of India and that the executive power of the Union Government
is vested in the President in terms of Article 53 of the Constitution and the same
shall be exercised by him either directly or indirectly through officers subordi-
nate to him in accordance with the Constitution. Further, in terms of Article 77 of
the Constitution, all executive actions of the Government of India shall be ex-
pressed to be taken in the name of the President. Therefore, the Central Govern-
ment means the President and the officers subordinate to him while exercising
the executive powers of the Union vested in the President and in the name of the
President. They further pointed out that AAR, Maharashtra had ruled that Ord-
nance Factory Bhandara is not “Government” since it is engaged in research, de-
velopment, production, testing, marketing and logistics of a comprehensive
product range in the areas of air, land and sea systems and is having an industri-
al status and functions under Ministry of Defence.
43. The Appellant further argued in this regard that nowhere under
law is it mentioned that “Government” cannot undertake activities relating to
“research, development, production, testing, marketing and logistics of a com-
prehensive product range in the areas of air, land and sea systems”. They further
contended that “Having an industrial status” is the result of the nature of activi-
ties carried out by Ordnance Factory Bhandara, and “functioning under the Min-
istry of Defence and being controlled by an apex body (Ordnance Factory
Board)” is a result of the organizational structure put in place to govern the func-
tioning of Ordnance Factories. So, these aspects should not be taken into consid-
eration while analyzing whether Ordnance Factory Bhandara is “Government”
or not as they are totally irrelevant.
44. They further argued that the only important factor to be analyzed is
that whether Ordnance Factory Bhandara falls into the definition of “Central
Government” as per the aforementioned clause (8) of Section 3 of the General Claus-
es Act, 1897 read with Article 53 & Article 77 of the Constitution of India.
“As per clause (8) of section 3 of the General Clauses Act, 1897, the ‘Central
Government’ shall, in relation to anything done or to be done after the
commencement of the Constitution, means the President. As per Article 53
of the Constitution, the executive power of the Union shall be vested in the
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