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TMI Blog2022 (4) TMI 1337X X X X Extracts X X X X X X X X Extracts X X X X ..... with itself any profit margin in this activity of collecting employees portion of canteen charges. This canteen service facility provided by Cadmach to its employees cannot be accorded as an activity made in the course or furtherance of business, to deem it a Supply by Cadmach to its employees. GST, at the hands of the Cadmach, is not leviable on the amount representing the employees portion of canteen charges, which is collected by Cadmach and paid to the Canteen service provider. - GUJ/GAAR/R/2022/20 - - - Dated:- 12-4-2022 - ATUL MEHTA AND ARUN RICHARD, MEMBER Present for the applicant : Shri Meet Jadawala, CA Brief facts : M/s. Cadmach Machinery Co. Pvt. Ltd., hereinafter referred to as Cadmach for the sak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orized persons/employees and expenditure incurred towards canteen facility borne by Applicant is part and parcel of cost to company. Once employee ceases to be in employment with Applicant, he/she is not authorized to use the canteen facility. In other words, employer-employee relationship is must to avail the canteen facility. 4. Cadmach submitted that in terms of Section 7 of CGST Act, 2017, for a transaction to qualify as supply, it should essentially be made in the course or furtherance of business. Cadmach is engaged only in the business of developing and manufacturing a broad range of pharmaceutical machineries and is maintain canteen as per the provisions of the Factories Act, 1948. Even of the said canteen facility were not provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1948, would come under definition of, 'outward supply' and, therefore, taxable as a 'supply' under GST Personal Hearing: 8. Shri Meet Jadawala attended the Virtual Hearing on 22-3-22 and reiterated the submission. Revenue s Submission: 9. Revenue has neither submitted its comments nor appeared for hearing. FINDINGS: 10. We find that Cadmach has arranged a canteen for its employees, which is run by a Canteen Service Provider. As per their arrangement, part of the Canteen charges is borne by Cadmach whereas the remaining part is borne by its employees. The said employees portion canteen charges is collected by Cadmach and paid to the Canteen Service Provider. Cadmach submitted that it does not retain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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