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2020 (10) TMI 1334 - AAAR - GSTInput Tax Credit - Purchase of Lift would be available to Hotel as it has been used in the course or for the furtherance of business - lift installed is a part of immovable property, or not - capital goods are used in providing taxable services - compliance with the requirements of section 16 of CGST Act 2017 - Blocking of credit in terms of section 17(5) (d) of CGST Act, 2017 - HELD THAT:- As per the Section 17 (5) of CGST Act mentioned above, the Input tax credit shall not be available on the goods and services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business - The definition of immovable property is not provided under GST Act. According to section 3 (26) of the General Clauses Act, 1882, “Immovable property shall include land, benefits to arise out of land and things attached to the earth, or permanently fastened to anything attached to the earth”. According to section 3 of the Transfer of Property Act, 1882, “Immovable property does not include standing timber, growing crops or grass”. The impugned item 'lift' merits classification as 'plant and machinery' and since 'plant and machinery' is excluded from the term 'immovable property', for the purpose of 17(5) (d), again appellant has pleaded that the plant and machinery includes certain foundations and structures however certain structures and foundations are excluded from Plant and Machinery and these are, land, building or any other civil structures, telecommunication towers and pipelines laid outside the factory premises - the lift installed in the building for the purpose of furtherance of business cannot be deemed to be a part of the building or an immovable property just because of the fact that it was fastened in the civil structure of the building by way of nuts, bolts and fasteners. Further, the lift so installed in his Hotel is not a customized lift but a pre-designed lift. These lifts require a specified area in a building and can easily be installed by fastening nut and bolts and other fasteners in the building and no specific modification or alteration is required in the building structure. Thereafter these lifts can be disassembled without causing any structural damage to the building and reassembled on need and can be resold in open market. Lift purchase does not qualify as goods but is works contract resulting into an immovable property. High rise buildings' sanctioned plan includes lifts or escalators as fixtures - the appellant has not made any statement regarding capitalization of lift expenses. Thus, the ITC is not admissible on purchase of Lift as per the Section 17(5) (d) of CGST Act, 2017.
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