Page 195 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : ORDNANCE FACTORY, BHANDARA 561
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), dat-
ed 28-6-2017. Further, 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 considera-
tions are exempt supply as discussed while
replying to the question 1 of the advance rul-
ing application of the Appellant. Since, all the
aforementioned supplies made by the Appel-
lant are exempt supply, any inputs or input
services viz. maintenance, upkeep, repair,
providing security, garbage collection, sew-
age treatment, civil construction, sweeping &
cleaning, etc., pertaining to the residential
quarters of employees of Ordnance Factory
Bhandara & other allied organisations, mar-
ket area, places for worship of God, gardens,
parks, playgrounds, swimming pool, foot-
paths, street lightings, which are used inside
the residential colony will not be available to
the Appellant for ITC in accordance with the
provision of Section 17(2) of the CGST Act,
2017.
(c) Medicines purchased Findings in Q. 2(c)
by the hospital main- we intend to agree with the Appellant’s sub-
tained by our organisa- missions in light of Section 9 of the CGST
tion and used for treat- Amendment Act, 2018, which amends Section
ment of factory em- 17(5)(b) of the CGST Act, 2017. Hence, we are
ployees and their de- of the opinion that Appellant are rightfully
pendents. Expenditure entitled to avail the ITC in respect of all the
on maintenance, up- inputs like medicines, equipment, furniture,
keep and other activi- etc. consumed in the hospitals and input ser-
ties relating to such vices like maintenance and upkeep of the
hospital. hospitals, etc., to provide the health services
to its employees and their dependents as per
the terms of the Ordnance Factory Medical
Regulation, which may be construed as the
law for the time being in force as mentioned
in the amended Section 17(5)(b) of the CGST
Act, 2017. Section 9 of the CGST Amendment
Act, 2018, which is in effect from 1-2-2019, has
inserted this condition, wherein the ITC in
respect of health services will be available to

GST LAW TIMES  23rd July 2020  195