|
Home
Forgot password New User/ Regiser Register to get Live Demo
2023 (8) TMI 1201 - AUTHORITY FOR ADVANCE RULING, TAMILNADUInput Tax Credit - GST paid on JCB (including spares) used by the Appellant for movement of goods in its place of business - HELD THAT:- There is a restriction on availment of ITC in respect of motor vehicles and Input Tax Credit is not available on “motor vehicle”, unless it is used for specified purposes like transport, training etc. However, we also find that in terms of provisions of Section 2(76) of the CGST Act, 2017, the expression “motor vehicle” shall have the same meaning as assigned to it in clause (28) of Section 2 of the Motor Vehicle Act, 1988. On the conjoint reading of Section 2(28) of the Motor Vehicles Act, 1988, the FAQ published in GST Sectoral Series - mining and the Hon’ble Apex Court judgement Goodyear India Vs UOI [1997 (2) TMI 229 - SUPREME COURT], it is apparent that Clause (28) of Section 2 of the Motor Vehicles Act, 1988, docs not include mining equipments viz., JCB, tippers, dumpers. Consequently, the GST charged on purchase of earth moving machinery like JCB used for transportation of taxable goods is eligible to be allowed as input credit. Manufacturing is most dependent on material handling systems and equipment. Some material handling equipment includes pallet trucks, order pickers, forklifts, Tipper Lorries, Dump Trucks and other machines/vehicles depending on the manufacturing processes as well as suitability felt by the manufacturers. In the instant case, the applicant uses the JCB that has been purchased for transportation of goods inside their factory premises. Manufacturing is most dependent on material handling systems and equipment. Some material handling equipment includes pallet trucks, order pickers, forklifts, Tipper Lorries, Dump Trucks and other machines/vehicles depending on the manufacturing processes as well as suitability felt by the manufacturers. In the instant case, the applicant uses the JCB that has been purchased for transportation of goods inside their factory premises. Thus, the appellant is eligible for GST paid by them at the time of purchase or repairs including spares w.r.t. vehicles-JCB used in the business for movement of goods in its palace of business to be claimed as input tax credit subject to conditions stipulated in Section 17(5)(a)(ii) and Section 17(2) of CGST Act, 2017.
|
