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TMI Blog2019 (8) TMI 1282X X X X Extracts X X X X X X X X Extracts X X X X ..... d Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s. Chennai Port Trust, No. 1, Rajaji Salai, Chennai-600001, (hereinafter called the Applicant) is engaged in supply of port services and incidental supply of goods like disposal of discarded assets. They are registered under GST with GSTIN 33AAALC0025B1Z9. They have preferred Applications seeking Advance Ruling on the following questions: 1. Whether the applicant is entitled to take credit of input tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontrol and supervision of Ministry of shipping of Government of India. The Statement of facts on the questions raised by the applicant is as under: 3. The applicant in Application ARA No. 28, has stated that as a part of Service Rules, they are providing health and medical cover to its employees and pensioners. For this purpose, the Central Government has notified the following two regulations under section 124(1) r.w.s 132(1) of Major Port Trusts Act, 1963. i. Chennai Port Trust Employees (Contributory Outdoor and Indoor Medical Benefit After Retirement) Regulations, 1989- notified vide Notification No. GSR 605 (E) dated 08.06.1989. ii. Chennai Port Trust Employees (Medical Attendance in the Trust's Hospital and reimbursement of H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... medicines under Section 16(1) subject to fulfillment of Rules 36 to 45 of CGST Rules. The applicant submitted copies of the two notifications mentioned in Para 3 above. 4.1 The Applicant was granted personal hearing on 24.09.2018 in respect of all the above applications ARA 28 dated 20.07.2018. The applicant represented through authorized representative. The submissions during the hearing are as under: The learned representative stated that medicines are being given to the employees free of cost and the medicinal equipment is used to render health benefits to the employee which is part of the package to the employee. They stated that they will submit a sample contract with the employee. They claimed these are used for the furtherance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Write up on the Chennai Port Trust Hospital; (2) Details of the trail of Treatment of Employees/ dependents. They have a written submission in which they stated that that the Chennai Port Trust Hospital was started originally as a Dispensary in 1939. Based on the Industries (Development and Regulation) Act 1951, the hospital started functioning as a full-fledged hospital. In 1985, a surgical block was also added. The hospital caters only to the employees, their dependents, pensioners, their spouses for in-patient and out-patient treatments. There is a casualty, intensive care, laboratory, wards and out-patient sections. The employees, their dependents, pensioners, family pensioners and CISF employees and their dependents posted in Chenn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not eligible to claim ITC on inward purchases of medicines to be supplied to their employees and pensioners for the reason that this activity is not their part and parcel of their activity and supply of medicines without any consideration amount to free supply, hence the applicant is not eligible for Input Tax Credit. 7. We have carefully considered the submissions made by the applicant in the advance ruling application, the additional submissions made during the personal hearings and the comments furnished by the State Jurisdictional Officer. The applicant has stated that the Chennai Port Trust Hospital was started originally as a dispensary in 1939. Based on the Industries (Development and Regulation) Act 1951, the hospital started fun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s these lump sum amounts are paid into. 8.1 Before determining whether the applicant is eligible for Input Tax credit for the inward supply of medicines, the relevant statutory provisions are referred to as under: Section 16(1) to (4) of CGST Act 2017 & TNGST Act 2017 provides the "Eligibility and conditions for taking Input tax credit" of is as follows: 16 (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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