The Applletate authority did not find any reason to amend our original order dated 17.02.2019, wherein it was held that the supply of the ElectroInk along with the other consumables comprising of blanket, photo imaging plate, binary ink developer, HP imaging oil, blanket web and other machinery products by the Appellant to its customers is ‘mixed supply’ and not the ‘composite supply’, as being claimed by the Appellant.

The Appellate authority held that since the questions asked by the Appellant are not covered under the jurisdiction of the advance ruling, no ruling can be passed in the instant case.

Question: 1) Being a part of the Ministry of Defence, Government of India, whether our organization Ordnance Factory Bhandara is liable to pay GST on the following supply of services: -
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-fulfillment of certain contract conditions.
(d) Food and beverages supplied at industrial 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.

Answer: The Appellant is not liable to pay GST in any of these abovementioned activities/transactions carried out by them.
  
   Question: 2) Whether Input Tax Credit on expenditure on the goods and services consumed   by our organisation in following activities shall be available: -
a) Maintenance of garden inside the factory premises.
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.
c) Medicines purchased by the hospital maintained by our organisation 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 within 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 organisation 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 within industrial canteen.

Question: 6) Whether proportionate Input Tax Credit has to be reversed in cases where lesser payment is made to the supplier due to deduction 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 deduction 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 organisation and what shall be the impact of such notifications: -
d) Notification No. 2/2018- Central Tax (Rate), in relation to services by an arbitrator or an advocate to our organisation.
e) Notification No. 3/2018- Central Tax (Rate), in relation to services supplied by our organisation by way of renting of immovable property to a person registered under the Central Goods and Services 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 vehicles, seized and confiscated goods, old and used goods, waste and scrap to a GST registered person.
Answer: Yes, all the three aforementioned notifications will be applicable to Ordnance Factory Bhandara.

The Appellate authority held that the Appellant is eligible to take benefit of rule 32(5) for the products in TABLE 1 placed by them before us except items placed at 7 & 8.CollectiblesCollectible Books  We cannot give any ruling on items 7 & 8 and we agree with the observations of the AAR on 7 & 8, that in absence of any specific description of the products contained in them, no ruling can be given.