Page 177 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : ORDNANCE FACTORY, BHANDARA 543
61. As regards the above question raised by the Appellant, we refer to
the reasoning made in the above para 56 and conclude that the Appellant, being
‘the Central Government’ is providing services of transportation to the children
of its employees, which are clearly non-business entities. Hence such services
rendered by the Appellant will not be subject to GST in accordance with the pro-
visions of Sr. No. 6 of the Notification No. 12/2017-C.T. (Rate) dated 28-6-2017.
62. Now, we will examine question 1(g) asked by the Appellant as to
whether Conducting exams for various vacancies in the factory will be subjected
to GST. In this regard, the Appellant’s submissions are as under :
For conducting examinations to fill up various staff vacancies in Ord-
nance Factory Bhandara, it collects fees from the candidates who wish to
appear in such examinations. So, keeping in view the above discussed Sr.
No. 6 of the exemption list on supply of services as per Notification No.
12/2017-Central Tax (Rate), such services of conducting examinations
provided by Ordnance Factory Bhandara attract ‘NIL’ rate of tax since
the provider of service (Ordnance Factory Bhandara) is “Central Gov-
ernment” and the recipient of services (candidates) are non-business en-
tities.
The AAR, Maharashtra had ruled that the said exemption is not applicable to
Ordnance Factory Bhandara since it is not “Government”.
63. As regards the above question raised by the Appellant, again we re-
fer to the reasoning made in the above para 56 and conclude that the Appellant,
being ‘the Central Government’ is providing services to the candidates, who are
undoubtedly the non-business entities, by way of conducting exams for various
vacancies in the factory, hence such services, rendered by the Appellant to such
non-business entities, will not be subject to GST in accordance with the provi-
sions of Sr. No. 6 of the Notification No. 12/2017-C.T. (Rate), dated 28-6-2017.
64. Since no appeal has been preferred against the ruling pronounced
in respect of the question 1(h) of the advance ruling application filed by the Ap-
pellant, the same has not been considered here for any discussions or rulings in
connection thereto.
65. Now, we will examine the question 2 of the Advance Ruling appli-
cation filed by the Appellant. The question asked by the Appellant was whether
Input Tax Credit on expenditure on the goods and services consumed by our
organisation in following activities shall be available or not.
(a) Maintenance of garden inside the factory premises.
(b) Maintenance and upkeep activities relating to gardens, parks, play-
ground, factory school for children of employees, hall for recrea-
tional activities, residential quarter buildings of employees, roads,
footpaths, street lightings and other parts of estate area that are lo-
cated outside the factory premises but within the factory estate.
(c) Medicines purchased by the hospital maintained by our organisa-
tion and used for treatment of factory employees and their depend-
ents. Expenditure on maintenance, upkeep and other activities relat-
ing to such hospital.
(d) Expenditure related to maintenance and upkeep of guest houses
maintained by organisation.
(e) Expenditure related to purchase of LPG cylinders used within in-
dustrial canteen.
GST LAW TIMES  23rd July 2020  177