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2023 (7) TMI 524 - AAAR - GSTInput Tax Credit - Steel, cement and other consumables - interpretation of the provisions of section 17 (5) (d) of the GST Act - integrated factory building is plant and machinery or not? Whether the overhead crane fixed in the factory premises can be classified as plant and machinery? - HELD THAT:- This crane is falling under HSN 8426 and taxable at 9% CGST+9% SGST in schedule III under Sl.No. 327 of rate notification No. 1/2017 Central fax Rate. Chapter 84 deals with machinery and hence the overhead crane would fall under the category of plant and machinery. As per the Explanation under section 17 of the CGST Act, 2017. the expression “Plant & machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports. Therefore, the structural support erected in relation to overhead crane alone would cover under the extended meaning of plant and machinery. The integrated factory building per se is not to be categorized as plant and machinery. The overhead crane and its proportionate structural support would be categorized as plant and machinery as per the explanation to Section 17 of the TNGST Act, 2017. Such structural support would not fall under the category of blocked input tax credit. Hence the appellant would be eligible for input tax credit proportionate to the extent of structural support erected in relation to overhead crane alone subject to fulfillment of conditions stipulated in section 17(5)(c) and (d) of the CGST Act, 2017 and explanation thereunder. However, they are not eligible for input tax credit relating to construction of other civil structure like side walls, roof of the Integrated factory building.
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