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TMI Blog2021 (8) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... proviso ends with a semicolon - Colons and semicolons are two types of punctuation. Colons are used in sentences to show that something is following, like a quotation, example, or list. Semicolons are used to join two independent clauses/ subclauses , or two complete thoughts that could stand alone as complete sentences. That means they re to be used when you re dealing with two complete thoughts that could stand alone as a sentence. Section 17(5)(b)(i) sub-clause ending with a colon and followed by a provisio which ends with a semi colon is to be read as independent sub-clause, independent of sub clause Section 17(5)(b)(iii) and its proviso [of subclause iii]. Thereby, the provisio to section 17(5)(b)(iii) is not connected to the sub-clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t with Applicant, he/she is not authorized to use the canteen facility. In other words, employer-employee relationship is must to avail this facility. 3. Applicant has submitted that they are not in the business of providing canteen service and hence recovery of nominal amount will not fall in definition of supply at all. Similar view is also upheld by Maharashtra AAR in the case of Jotun India (P) Ltd- 2019-TIOL-312-AAR-GST. 4. The applicant submitted that they deducted nominal amount from employee's salary for availing canteen facility. In other words, difference between amount paid to service provider and amount recovered from employees is cost to company as salary cost. Question on which Advance Ruling sought 1. Whether input tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out by applicant is without consideration. 8. We now detail our findings on admissibility of GST paid on canteen charges. Section 17(5)( b) of CGST Act, 2017 reads as follows:- Section 17(5)(b) "(b) the following supply of goods or services or both- (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... semi colon is to be read as independent sub-clause, independent of sub clause Section 17(5)(b)(iii) and its proviso [of subclause iii]. Thereby, the provisio to section 17(5)(b)(iii) is not connected to the sub-clause of Section 17(5)(b)(i) and cannot be read into it. Judicial Discipline 8.4. i. We find our view is in compliance to judicial discipline as laid down by the Hon'ble Supreme Court and Hon'ble High Courts. The relevant extract of Hon'ble Supreme Court's judgment in the case of PIL of Shri Jayant Verma v. Union of India, dated 16-2-2018 related to the expressions separated by semicolon is as follows: "Firstly, purely grammatically, a semicolon separates the two expressions showing that they are not inextricably connected. & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mi colon or not. In this decision, the High Court is of the opinion that the clause (i) is followed by ";" and the word "or". Therefore, each of the sub-clauses is independent provision and condition of 90% participation would not be applicable to clause (i). 8.5 We notice that case law: CCE, Nagpur vs Ultratech Cements Ltd as reported in 2010 (260) ELT 369 (Bom) was cited by applicant wherein credit was held not admissible to manufacturer on part of cost borne by worker. The case law pertains to Service Tax era. We now are dealing with GST matter and are to pronounce Ruling within the confines of CGST Act. The cited case law therefore does not apply to the present matter. Also, the ITC on GST paid on canteen facility i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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