This Act shall apply in relation to taxable supplies by the Crown as it applies in relation to taxable supplies by taxable persons.

Where the supply by a Government department of any goods or services does not amount to the carrying on of a business but it appears to the Treasury that similar goods or services are or might be supplied by taxable persons in the course or furtherance of any business, then, if and to the extent that the Treasury so direct, the supply of those goods or services by that department shall be treated for the purposes of this Act as a supply in the course or furtherance of any business carried on by it.

The Commissioners may make the refunding of any amount due under subsection (2A) above conditional upon compliance by the claimant with requirements with respect to the keeping, preservation and production of records relating to the supply or importation in question.

For the purposes of this section goods or services obtained by one Government department from another Government department shall be treated, if and to the extent that the Treasury so direct, as supplied by that other department and similarly as regards goods or services obtained by or from the Crown Estate Commissioners.

In this section “Government department” includes a Northern Ireland department F2, a Northern Ireland health and social services body, any body of persons exercising functions on behalf of a Minister of the Crown F3including a health service body, as defined in section 60(7) of the National Health Service and Community Care Act 1990, and any part of a Government department (as defined in the foregoing) designated for the purposes of this subsection by a direction of the Treasury.

For the purposes of subsection (4) above a National Health Service trust established under Part I of the National Health Service and Community Care Act 1990 or the National Health Service (Scotland) Act 1978 shall be regarded as a body of persons exercising functions on behalf of a Minister of the Crown.