Page 184 - GSTL_23rd July 2020_Vol 38_Part 4

550 GST LAW TIMES [ Vol. 38
96.1 We have carefully considered the above submissions made by the
Appellant, which also included the above cited case laws. It is not forthcoming
from any of the above cited judgments as to whether the manufacturers involved
in the aforementioned cases is charging some amount/rent for providing the ac-
commodation facility to its staffs in the residential colony maintained by them.
Thus, the facts and circumstances of the above cited cases are different from the
instant case, where the Appellant is charging some rent/consideration from their
employees for providing accommodation facility in the residential colony main-
tained by it, which renders the said activity of the Appellant as supply of resi-
dential services, which is an exempt supply in itself in terms of the provisions
made at Sr. 12 of the Notification No. 12/2017-C.T. (Rate), dated 28-6-2017. Fur-
ther, the education services provided by the factory school to the children of the
employees, renting of the recreational halls to the employees for organizing some
family functions against certain considerations are exempt supply as discussed
while replying to the question 1 of the advance ruling application of the Appel-
lant.
Since, all the aforementioned supplies made by the Appellant are exempt
supply, any inputs or input services viz. maintenance, upkeep, repair, providing
security, garbage collection, sewage treatment, civil construction, sweeping &
cleaning, etc., pertaining to the residential quarters of employees of Ordnance
Factory Bhandara & other allied organisations, market area, places for worship of
God, gardens, parks, playgrounds, swimming pool, footpaths, street lightings,
which are used inside the residential colony will not be available to the Appel-
lant for ITC in accordance with the provision of Section 17(2) of the CGST Act,
2017.
(ii) Shops that are given on rental basis for commercial purposes :-
In general, services related to establishment, repair and mainte-
nance of such shops is procured. Such shops are used for commer-
cial purposes & commercial lease rent is recovered from the tenants
of such shops on which GST is collected by Ordnance Factory
Bhandara. Thus, the Input Tax Credit related to such services in re-
lation to such shops should be admissible as such expenditure is di-
rectly related to the business of renting of immovable property un-
less otherwise blocked under any other provisions of the CGST Act,
2017.
96.2 On perusal of the above submissions made by the Appellant, it is
opined that as per the provision of Section 16(1) of the CGST Act, 2017, the Ap-
pellant is entitled to avail ITC in respect of expenditures incurred on the input
services used in the taxable supply of the renting of immovable property for
commercial purposes.
(iii) Inter-connected roads between various establishments and factory
premises :-
The specific transactions in respect of which ruling on entitlement of
input tax credit is required is specified in the enclosed “Annexure
B”. In general, services related to construction, repair and mainte-
nance of such roads is procured. Roads connect the various estab-
lishments within the factory premises; that is factory where manu-
facturing activity is done and administration building with various
other establishments within the factory estate like residential quar-
ters, market area and other establishments mentioned above. Thus,
the Input Tax Credit related to expenses mentioned in “Annexure
GST LAW TIMES  23rd July 2020  184