Page 173 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : ORDNANCE FACTORY, BHANDARA 539
President and shall be exercised by him either directly or indirectly through
officer's subordinate to him in accordance with the Constitution. Further, in
terms of Article 77 of the Constitution, all executive actions of the Govern-
ment of India shall be expressed to be taken in the name of the President.
Therefore, the Central Government 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.”
45. The Appellant further accentuated that all the powers provided to
Ordnance Factory Bhandara’s officers and decisions taken in Ordnance Factory
Bhandara are on behalf of the President of India. Even the recruitments in the
Indian Ordnance Factories as a Group A gazette officers are appointed through
union public service commission on behalf of President of India.
46. The Appellant further stressed that Ordnance Factory Board Pro-
curement Manual is a manual issued by the Ordnance Factory Board for pro-
curement of stores for production in Ordnance Factories. This has been finalized
by MoD in consultation with Integrated Defence Finance and has the approval of
Hon’ble Raksha Mantri.
Para 7.25 of the “Ordnance Factory Board Procurement Manual” states
that -
“All defence contracts are in the name, and on behalf of the President of India.”
They have also furnished a copy of a Supply Order placed to a vendor wherein
the Supply Order has been placed on & signed on behalf of the President of India
by the concerned officer of Ordnance Factory Bhandara.
47. The Appellant have also produced an appointment letter of an of-
ficer of Ordnance Factory Bhandara to manifest that the recruitments of the offic-
ers in the Ordnance Factory Bhandara are done on behalf of the President of In-
dia.
48. Thus, the Appellant contended that all the executive functions of
Ordnance Factory Bhandara like recruitment, procurement etc. are done on be-
half of the and in the name of the President of India while exercising the execu-
tive powers of the Union vested in the President, thereby submitting that Ord-
nance Factory Bhandara is not merely a Government organization, it is “Central
Government” itself since as explained above, it satisfies the conditions of being
called “Central Government” as per the aforementioned provision of the Section
2(53) of the CGST Act, 2017 read with clause (8) of Section 3 of the General
Clauses Act, 1897 read with Article 53 & Article 77 of the Constitution of India.
49. Further, the Appellant for the purpose of justifying their legal status
as ‘Government’, has highlighted the constitution of their PAN allotted to them,
which is “AAAGG0001Q”, wherein the 4th letter is “G”, which stands for “Gov-
ernment.”
50. Further, the certificate, which was issued by the Jt. Secretary, Minis-
try of Defence, Department of Defence Production dated 18-4-2006 for Sales Tax
purposes, wherein it was certified that the Indian Defence Forces and Indian
Ordnance Factories are integral part of the Ministry of Defence, Government of
India, and funds for meeting the expenditure on salaries and wages, stores etc.
are drawn from the Defence Services Estimates of the Union Budget, clearly
showcase this fact that the Ministry of Defence has certified that Indian Ord-
nance Factories are integral part of the Government of India, which in other
words means that Ordnance Factory Bhandara is “Government” for all practical
purposes.

GST LAW TIMES  23rd July 2020  173