Page 193 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : ORDNANCE FACTORY, BHANDARA 559
(b) Amount of Security de- letter of the Group A Gazetted Officer of the
posit forfeited of suppli- Ordnance Factory, OFB Procurement Manual.
ers due to non-fulfilment OFB Procurement Manual clearly shows that
of certain contract condi- all defence contracts are in the name and on
tions. behalf of the President of India only. Further,
(d) Food and beverages the signatures on the supply order placed to
supplied at industrial the Vendors, the Acceptance of the Tender,
canteen inside the facto- etc., clearly exhibits that all these executive
ry premises. works are being carried out in the name, and
(e) Community hall (Multi- on behalf of the President of India. Thus, it is
purpose Hall) provided adequately evident that the Ordnance Factory
on rental basis to em- Bhandara, the Appellant, is nothing but ‘the
ployees of our organiza- Central Government’ in accordance with the
tion. provision of Section 2(53) of the CGST Act,
(f) School bus facility pro- 2017 read with clause (8) of Section 3 of the
General Clauses Act, 1897 read with Article
vided to children of the 53 & Article 77 of the Constitution of India. In
employees. view of the above, the Appellant is not liable
(g) Conducting exams for to pay GST on the following services supplied
various vacancies. by them :

(a) Liquidated damages deducted from the
payments to be made to suppliers in case of
delayed delivery of goods or services.
(b) Amount of Security deposit forfeited of
suppliers due to non-fulfilment of certain
contract conditions.
(d) Food and beverages supplied at indus-
trial canteen inside the factory premises.
(e) Community hall (Multipurpose Hall)
provided on rental basis to employees of our
organization.
(f) School bus facility provided to children
of the employees.
(g) Conducting exams for various vacancies.
Question : (2) Whether input Findings in respect of Q. 2(a) :- On perusal of
Tax Credit on expenditure on the submissions made by the Appellant in-
the goods and services con- cluding the various Judicial pronouncements
sumed by our organisation in cited by the Appellant, wherein it was cate-
following activities shall be gorically held by the courts that Cenvat credit
available :- in respect of the input services used in the
(a) Maintenance of garden maintenance of the gardens in the factory
inside the factory prem- premises is admissible, it is opined that ratio
ises. of these judicial pronouncements is clearly
applicable in the instant subject matter as the
facts and circumstances of the instant subject
matter is similar to the facts and circumstanc-
GST LAW TIMES  23rd July 2020  193