Page 199 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : ORDNANCE FACTORY, BHANDARA 565
estate area that are located outside the factory premises but
within the factory estate.
(c) Medicines purchased by the hospital maintained by our or-
ganisation and used for treatment of factory employees and
their dependents. Expenditure on maintenance, upkeep and
other activities relating 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 with-
in industrial canteen.
Answer : ITC in respect of the following input services are available to the
Appellant :
(a) Maintenance of garden inside the factory premises;
(c) Medicines purchased by the hospital maintained by our or-
ganisation and used for treatment of factory employees and
their dependents. Expenditure on maintenance, upkeep and
other activities relating to such hospital.
ITC in respect of the following input services are not available to
the Appellant : (b) Maintenance and upkeep activities relating
to gardens, parks, playground, factory school for children of
employees, hall for recreational activities, residential quarter
buildings of employees, roads, footpaths, street lightings and
other parts of estate area that are located outside the factory
premises but within the factory estate.
(d) Expenditure related to maintenance and upkeep of guest
houses maintained by organisation.
(e) Expenditure related to purchase of LPG cylinders used with-
in industrial canteen.
Question : (6) Whether proportionate Input Tax Credit has to be re-
versed in cases where lesser payment is made to the supplier due to de-
duction on account of liquidated damages from supplier’s dues.
Answer : No, the Appellant is not required to reverse any proportionate Input
Tax Credit in cases where lesser payment is made to the supplier due to deduc-
tion on account of liquidated damages from supplier’s dues.
Question : (7) Being a part of the Ministry of Defence, Government of
India, whether the following notifications are applicable to our organisa-
tion and what shall be the impact of such notifications :-
(d) Notification No. 2/2018-Central Tax (Rate), in relation to ser-
vices by an arbitrator or an advocate to our organisation.
(e) Notification No. 3/2018-Central Tax (Rate), in relation to ser-
vices supplied by our organisation by way of renting of immovable
property to a person registered under the Central Goods and Ser-
vices Tax Act, 2017.
(f) Notification No. 36/2017-Central Tax (Rate), in relation to
payment of tax on reverse charge mechanism on sale of used vehi-
GST LAW TIMES  23rd July 2020  199