In re Sundaram Clayton Limited (GST AAR Tamilnadu)
Applicant proposed to supply frozen chicken contained in a wholesale bag of 30kgs containing 15 small packs of 2 kg each to institutional customers or to a distributor who would further supply to institutional customers or to non-institutional customer
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, TAMILNADU
M/s. Sundaram Clayton Limited, Auto Ancillary, SEZ, AA5, VI Avenue, Mahindra World City, Natham, Kanchipuram, Chennai 603002 (herein after referred to as The Applicant’), are registered with GST and hold GSTIN 33AAACS4920J2ZI. The Applicant is engaged in the manufacture and supply of die-casting parts for use in automobiles.
2.1. The Applicant has submitted the copy of application in Form GST ARA – 01 and also submitted a copy of challan evidencing payment of application fees of Rs.5,000/- each under sub-rule (1) of Rule 104 of CGST Rules 2017 and SGST Rules 2017.
2.2. The Applicant submitted that
> They have over 250 people working at their plant which includes employees and trainees, who are in their payrolls and also include contractual workers who are on the rolls of third party.
> Section 46 of the Factories Act, 1948, prescribes that-
“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”
> The State Government of Tamil Nadu has provided for mandatory provision of canteen facility under the Tamil Nadu Factories Rules, 1950, which states that-
“65(2) The occupier of every factory notified by the State Government and wherein more than two hundred and fifty workers are ordinarily employed shall provide in or near the factory an adequate canteen according to the standards prescribed in these rules”.
> Further ‘worker’ is defined under Section 2(I) of the Factories Act as,
“a person employed, directly by or through any agency(including a contractor) with or without the knowledge fo the principal employer,
whether for remuneration or not, in any manufacturing process, ………..
> In compliance with the said requirement, a canteen is provided in the factory premises; The food supplies are bought by them and they have hired a cook, who is their employee, to prepare the food.
> They recover a subsidized amount from the workers, as given below, and the remaining cost is borne by them.
