It is submitted that the definition of the term “business” has been defined under the GST

regime but, the phrase “in the course or furtherance of” has not been dealt with in any manner

under the model GST law.

Further, the Australian Concise Oxford Dictionary (1997) defines the phrase 'in the course of'

as 'during' and the word 'furtherance' as to mean 'furthering or being furthered; the

advancement of a scheme etc.'

In fact, the Explanatory Memorandum relating to the A New Tax System (Goods and

Services Tax) Bill, 1998 confirms this ordinary meaning at paragraph 3.10 which states:

‘In the course or furtherance' is not defined, but is broad enough to cover any supplies

made in connection with your enterprise. An act done for the purpose or object of

furthering an enterprise, or achieving its goals, is a furtherance of an enterprise

although it may not always be in the course of that enterprise.

Further, the term business has been defined u/s 2(17) to include:

(a) any trade, commerce, manufacture, profession, vocation or any other similar
activity, whether or not it is for a pecuniary benefit;

(b) any transaction in connection with or incidental or ancillary to (a) above;

(c) any transaction in the nature of (a) above, whether or not there is volume,
frequency, continuity or regularity of such transaction;

(d) supply or acquisition of goods including capital assets and services in connection
with

(e) commencement or closure of business;

(f) provision by a club, association, society, or any such body (for a subscription or
any other consideration) of the facilities or benefits to its members, as the case may be;

(g) admission, for a consideration, of persons to any premises; and

 (h) services supplied by a person as the holder of an office which has been accepted
by him in the course or furtherance of his trade, profession or vocation;

Hence, it is further contented that the meaning of “in the course or further of business” is very

wide and It would be therefore sufficient to say that any supplies received by a taxable person

that is used during business will form part of business itself.

Therefore, if some supply is either used exclusively in the course/ furtherance of business or

partly used in the course/ furtherance of business, the basic provision enabling the claim of

credit does not contain any restrictions. The restriction would apply only in cases where the

supply is not to be used exclusively in the course or furtherance of business.

Reliance has been placed on the case State of Tamil Nadu And Another vs Board Of

Trustee Of The Port Of Madras– AIR 1999 SUPREME COURT 1647, where The Supreme

Court observed that, according to the definition of business, if the main activity is in relation

to trade, commerce or manufacture or incidental or ancillary to trade, commerce,

manufacture, the activities undertaken shall fall under business

Reliance in this regard is also placed on the case of Commissioner Of Central Excise,

Bangalore v. Millipore India (P.) Ltd. – (2012) 34 STT 86 (KAR), wherein it was observed

as follows:

“7. That apart, the definition of input services is too broad. It is an inclusive definition.

What is contained in the definition is only illustrative in nature. Activities relating to

business and any services rendered in connection there with, would form part of the

input services. The medical benefits extended to the employees, insurance policy to

cover the risk of accidents to the vehicle as well as the person, certainly would be a

part of the salary paid to the employees. Landscaping of factory or garden certainly

would fall within the concept of modernization, renovation, repair, etc. of the office

premises. At any rate, the credit rating of an industry is depended upon how the factory
 is maintained inside and outside the premises. The Environmental law expects the

employer to keep the factory without contravening any of those laws. That apart, now

the concept of corporate social responsibility is also relevant. It is to discharge a

statutory obligation, when the employer spends money to maintain their factory

premises in an eco-friendly, manner, certainly, the tax paid on such services would

form part of the costs of the final products. In those circumstances, the Tribunal was

right in holding that the service tax paid in all these cases would fall within the input

services and the assessee is entitled to the benefit thereof. In that view of the matter,

we do not see any infirmity in the order passed by the Tribunal. Accordingly, the

substantial questions of law framed in this appeal are answered in favour of the

assessee and against the revenue. The appeal is dismissed.”

Similarly, in the on the case of Commissioner of C.Ex. v. Ultratech Cement Ltd., 2010 (20)

S.T.R. 577 (Bom.), it was observed that:

“28. In the present case, the question is, whether outdoor catering services are

covered under the inclusive part of the definition of “input service”. The services

covered under the inclusive part of the definition of input service are services which

are rendered prior to the commencement of manufacturing activity (such as services

for setting up, modernization, renovation or repairs of a factory) as well as services

rendered after the manufacture of final products (such as advertisement, sales

promotion, market research etc.) and includes services rendered in relation to business

such as auditing, financing.... etc. Thus, the substantive part of the definition “input

service” covers services used directly or indirectly in or in relation to the

manufacture of final products, whereas the inclusive part of the definition of “input

service” covers various services used in relation to the business of manufacturing the

final products. In other words, the definition of “input service” is very wide and
 covers not only services, which are directly or indirectly used in or in relation to the

manufacture of final products but also includes various services used in relation to

the business of manufacture of final products, be it prior to the manufacture of final

products or after the manufacture of final products. To put it differently, the

definition of input service is not restricted to services used in or in relation to

manufacture of final products, but extends to all services used in relation to the

business of manufacturing the final product.

29. The expression “activities in relation to business” in the definition of “input

service” postulates activities which are integrally connected with the business of the

assessee. If the activity is not integrally connected with the business of the

manufacturer of final product, the service would not qualify to be a input service under

Rule 2(l) of the 2004 Rules.

It is further submitted that ITC can be claimed on input services & capital goods subject to

such restrictions specified under the law. Input services and capital goods are defined under

the GST Act, 2017.

It is further submitted that “Input services” is defined under section 2(60) of the CGST Act,

2017 which means any service used or intended to be used by a supplier in the course or

furtherance of business.

Therefore, it is apparent from the above definition that ITC can be claimed on input services

and capital goods only when they are used or intended to be used in the course of furtherance

of business.

Hence, from above mentioned contentions and precedents, it can be concluded that the term

“in the course or further of business” has a very wide meaning and thus will includes all the

services that form part and parcel of the business

Thus, it is humbly submitted that ITC claimed by the Noticee for services formed part and

parcel of the business, therefore it can be asserted that the services availed by the Noticee was

done “in the course or further of business”, hence the ITC claimed by the Noticee was legal

as per the provisions of the GST regime

FORM GST DRC - 06

[See rule 142(4)]
Reply to the Show Cause Notice
1. GSTIN 03AABCC4031B1ZO

2. Name Cheema Boilers Limited

Show Cause Notice alongwith DRC-

Date of Issue -
3. Details of Show Cause Notice 01 bearing reference number –
29.01.2024
ZD030124037227W

4. Financial Year 2018 – 19

5. Reply Enclosed as Annexure-A

Reply comprising of submissions and supporting annexures relied upon are enclosed
as Annexure-A

6. Documents uploaded

Enclosed with Reply in Annexure – A.

7. Option for personal

 Yes No
hearing

8. Verification-
I hereby solemnly affirm and declare that the information given herein above is true and
correct to the best of my knowledge and belief and nothing has been concealed therefrom.

Signature of Authorized Signatory

Name ___________
Designation / Status -------
Date - _____