2022 (4) TMI 1337

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....nt : Shri Meet Jadawala, CA Brief facts : M/s. Cadmach Machinery Co. Pvt. Ltd., hereinafter referred to as Cadmach for the sake of brevity, is engaged in manufacture and supply of pharmaceutical machinery. Cadmach is working with the capacity of approximately 400 employees & workers. In compliance to section 46 of the Factories Act, Cadmach is carrying out canteen facilities through third pa....

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....'s portion) is paid to the Canteen Service Provider by the Applicant. For instance, Cadmach and canteen contractor agrees to provide a dish @ 60/- per plate and the contractor charges the GST on such supply. The company pays Rs. 50/- directly to contractor and recover Rs. 10 from employees and pay to the contractor. 3. Cadmach is recovering nominal amount on monthly basis to ensure use of cante....

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....siness of the Cadmach would still be continuing. The employees/ workers are vital resources to carry out the day to day affairs of the Cadmach. Further, the said activity is not a factor which will take the Cadmach business activity forward. 5. Cadmach submitted that they are not supplying any canteen service to its employees in the instant case. The said canteen facility services are also not ....

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....s as mentioned in clause (a) of section 2 (17) of the CGST Act. Question on which Advance Ruling sought: 7. Whether recovery of amount from employee on account of third party canteen service provided by assessee, which is obligatory under section 46 of Factories Act, 1948, would come under definition of, 'outward supply' and, therefore, taxable as a 'supply' under GST Pers....