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2020 (1) TMI 1597 - AAAR - GSTInput Tax Credit - GST paid on goods purchased for the purpose of maintenance such as Vitrified Tiles, Marble, Granite, ACP Sheet, Steel Plates, TMT Tor (Saria), Bricks, Cement, Paint, Chemicals, Sanitary items like wash basin, urinal pots and toilets accessories - GST paid on Work contract service received from registered & unregistered Contractor for Maintenance Contract of building - HELD THAT:- The goods are being purchased by the appellant for the maintenance of building which is housing his Mall, Theatre, Food Court and a retail apparel store. This transaction falls under clause (d) which stipulates that goods or services or both received by a taxable person for construction of an immovable property on his own account would be ineligible for ITC claim. The word “construction” has been explained by explanation appended to clause (c) and clause (d). As per explanation construction includes “re-construction, renovation, additions or alterations or repairs”. The word repair simply means “to restore (something damaged, faulty, or worn) to a good condition - A building which has become old would certainly require inward supply of goods such as vitrified tiles, Marble, Granite, ACT sheets, Steel Plates, TMT Tor, bricks, Cement, Paint, Chemicals and other sanitary items like Urinal Pots, Wash Basins and Toilet accessories for restoring it to a usable condition. These purchases are being made in own account for repair of building which is immovable property. Where this repair work is carried out by registered or unregistered suppliers by providing services it would qualify for work contract services. “Capital Goods” have been defined in clause (19) of section 2. It says, “capital goods means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business.” It simply means that classification of any goods as capital goods would be dependent / at the sweet will of a taxpayer on making entry in his books of accounts. If the value of goods has been capitalised, it would become capital goods and if it is not capitalised, it would not become capital goods - it is entirely at the discretion of a taxpayer to treat these expenses either as Revenue or as Capital Expenditure. Capitalisation or Non-capitalisation of these expenses is certainly not a permanent indelible mark in the account books. These accounting entries may be modified, altered or deleted as per prevailing/ changing contingencies. These entries are not Static but dynamic. Sub-section (2) of section 103 states as “The advance ruling referred to in sub-section (1) shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed.” In situations where a taxpayer or appellant alters or modifies the accounting entry, his eligibility to claim ITC also changes.
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