The MAAAR held as under:
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 organization 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 organization 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 organization.
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 organization 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 organization.
(e) Expenditure related to purchase of LPG cylinders used within industrial canteen.