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TMI Blog2019 (8) TMI 1281X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the said goods and services. They are used by the employees and dependents and hence are for personal consumption and the applicant is ineligible to take input tax credit on the inward supply of medical, diagnostic equipment, apparatus, instruments, consumables, disposables, spares and repairing services for these used to provide health facilities to its employees in its hospital. The applicant is not entitled to take credit of input tax charged on the inward supply of medical, diagnostic equipment, apparatus, instruments, consumables, disposables, spares and repairing services for these, which are used to provide medical facilities to the employees, pensioners and dependents in the in-house hospital. - Order No. TN/32/AAR/2019 - - - Dated:- 25-7-2019 - MS. MANASA GANGOTRI KATA IRS AND THIRU KURINJI SELVAAN V.S., M.SC., (AGRI.), M.B.A., MEMBER Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated. At th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that they are engaged in supply of port services and incidental supply of goods like disposal of discarded assets. They are notified as a major port by the Central Government under Section 3(8) of Indian Ports Act 1908 r.w.s. 2(m) of Major Port Trusts Act, 1963 vide notification No. GST(E) dt 01.02.1975. The affairs of the applicant are administered by a Board constituted by the Central Government from time to time as per the provisions of Major Port Trusts Act, 1963. The applicant is functioning under the administrative control and supervision of Ministry of shipping of Government of India. The Statement of facts on the questions raised by the applicant are as under: 3. The applicant in application ARA No. 30, has stated that the applicant is 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 Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ared through their Authorized Representative and stated as follows: They have a hospital facility inside the Chennai Port Trust which is used by employees. They will furnish the details of the Hospital regarding the registration of the same, employee contract, documents/ invoices for provision of health services for employee and kin, financial documents, balance sheets, statements showing how income from hospital is accounted in the Chennai Port Trust. The applicant undertook to submit the documents in 2 weeks. The State jurisdictional officer appeared and submitted written comments on the ARA. 5.2 The applicant vide their letter dated 21.05.2019, furnished the following documents: (1) 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 empl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on) Act 1951, the hospital started functioning as a full-fledged hospital. The applicant has an in house hospital for its employees, their dependents, pensioners and family pensioners for in-patient and out-patient treatments. They are governed by Two regulations under Section 124(1) read with section 132(1) of Major Port Trusts Act 1963, which are (i) Chennai Port Trust Employees' (Contributory Outdoor and Indoor Medical Benefit After retirement) Regulations, 1989; (ii) Chennai Port Trust Employees' (Medical Attendance in the Trust's Hospital and Reimbursement of Hospital Charges) Regulations 1994. The treatments, food for in patients and medicines are provided free of charge to them. The hospital has a 24x7 casualty and Intensive Care unit, High end laboratory, State of art operation theatre, computed Radiography and imaging technology in addition to wards and outpatient sections. The hospital is a cost center and the inward supply of medicine is provided to the employees and pensioners without charging any separate consideration. The hospital also procures medical, diagnostic equipment, apparatus, instruments, consumables, disposables, spares and repairing services f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stic equipment, apparatus, instruments, consumables, disposables, spares and repairing services for these. These goods and services are used for providing personal medical care to the individuals who are the employees and pensioners of the applicant. They are in effect used for personal consumption of the employees, pensioners and dependents. Therefore, as per Section 17 (5) (g) of CGST/TNGST ACT, input tax credit is not available for medical, diagnostic equipment, apparatus, instruments, consumables, disposables, spares and repairing services for these which the applicant is procuring for the consumption of its employees and pensioners and their dependents. The applicant has stated in their application that these are not goods or services used for personal consumption as the applicant pays for the same. The argument does not hold. The fact of who pays for the goods and services here is irrelevant to the usage of the said goods and services. They are used by the employees and dependents and hence are for personal consumption and the applicant is ineligible to take input tax credit on the inward supply of medical, diagnostic equipment, apparatus, instruments, consumables, disposab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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