9911796707
TMI Blog2023 (9) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... hereinafter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017. 3. Brief Facts of the case: 3.1 M/s KSH Automotive Pvt Ltd (hereinafter referred to as applicant) Is engaged in the business of manufacture of auto parts and components and supplier to KIA motors. Applicant is having GST Registration number 37AAGCK8900L1Z5. The applicant provides canteen facilities to employees, through a registered person, who issued tax invoices and levies applicable GST. 4. Questions raised before the authority: The applicant seeks advance ruling on the following: 1. Whether input tax credit is available on the canteen services On Verification of basic information of the applicant, it is observed that the applicant is under Central jurisdiction i.e, Hindupur-2 Range, Anantapur Division. Accordingly, the application has been forwarded to the jurisdictional officer and a copy marked to the Central Tax authorities to offer their remarks as per Sec. 98(1) of CGST /APGST Act 2017. In response, remarks are received from the Central jurisdictional officer concerned stating that no proceedings lying pending with the issue, for which the advance ruling was sought by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yees to comply with the mandatory requirement of maintaining the canteen as per the Factories Act, 1948. The relevant section 46 of the factories act states as under: Section 46 Canteens (1) The State Government may make rules requiring that in any specified factory wherein more than two hundred and fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of the workers (2) Without prejudice to the keneralitv of the fore] oinz power, such rules may provide for- (a) the date by which such canteen shall be provided; (b) the standards in respect of construction, accommodation, furniture and other equipment of the canteen; (c) the foodstuffs to be served therein and the charges which may be made therefor; (d) the constitution of a managing committee for the canteen and representation of the workers in the management of the canteen; (dd) the items of expenditure in the running of the canteen which are not to be taken into account in fixing the cost of food stuffs and which shall be borne by the employer; (e) the delegation to the Chief Inspector, subject to such conditions as may be prescribed, of the po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... caterer has nexus or integral connection with the business of manufacturing the final product namely, cement. Hence, in our opinion, the Tribunal was justified in following the larger bench decision of the tribunal in the case of GTC Industries Ltd. (supra) and holding that the assessee is entitled to the credit of service tax paid on outdoor catering service. Thus, applicant is of the view that canteen Services to employees in the Factory Premises as mandated by Factory Act, 1948 is eligible to claim ITC. 5.4 The applicant further states that, Circular No. 172/ 04/ 2022-GST dated 6th July 2022 has inter alia clarified that the proviso after sub-clause (iii) of clause (b) of sub-section (5) of section 17 of the CGST Act is applicable to the whole of clause (b) of sub-section (5) of section 17 of the CGST Act. Circular No, 172/04/2022-GST dated 06.07.2022. In S.No. 3 of the table contained in Para 2 of the said circular it is explicitly clarified that the above proviso is applicable to the whole of Section 17(5)(b). Said portion of the circular is reproduced here below for ease of reference. Sl.No. Issue Clarification Clarification on various issues of section 17(5) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght of the facts and arguments submitted by the applicant. We have considered the submissions made by the applicant in their application for Advance Ruling. We have considered the issues involved from which advance ruling is sought by the applicant and the relevant facts along with arguments made by the applicant and also their submissions made during the time of the personal hearing. The issue inward in the instant case is to decide i) Whether the applicant is eligible to take the ITC on the vendor invoices received towards food served in the canteen? Before passing the ruling in the applicant's we will like to enlist the following facts a) The applicant is in the business of manufacture of automotive parts and registered as per law under the Factories Act. b) There are more than 250 workers. c) As per the Andhra Pradesh Factory Rules, 1950 every factory with more than 250 workers shall be provide for adequate canteen facility with prescribed standards. d) The applicant in pursuant to the above statutory requirements is providing the canteen services. For this purpose, they had made contracts with vendors for providing food to workers who are charging GST. The worke ..... X X X X Extracts X X X X X X X X Extracts X X X X
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