TMI Blog2019 (12) TMI 1549X X X X Extracts X X X X X X X X Extracts X X X X ..... me line of business and entitled to take ITC on the tax invoice raised by his supplies as his output is works contract services. In the instance case, the applicant is the supplier of works contract services and the goods and services received by him for construction of immovable property (other than Plant or machinery) are neither owned nor capitalized in his own account, but passed on to the contractee. Hence even as per the provision of Section 17(5) (d), the applicant does not fall under this ineligible category. Thus the restriction contained under clause c d of sub section 17(5) is not applicable to the applicant in the given circumstances. The applicant is eligible for Input Tax Credit (ITC) in respect of the GST paid on good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the Applicant) is a works contractor executing the works awarded by the Government of Andhra Pradesh, Panchayat Raj Department, Eluru Circle. The name of works being executed by the applicant is Reconstruction of the road work Penugonda to Munamarru in Penugonda Mandal of Achanta Assembly Constituency, West Godavari District. The scope of the work is clearing and grubbing, stripping excess soil, earthwork, GSB WMM, BT Prime coat, Tack Coat BM, CD works BT tack coat, BM, SDBC, CC pavement Shoulders Road Furniture by mechanical means and disposal of unserviceable materials and stacking of serviceable material as per schedule-A of the agreement. The predominant goods and services being utilised in execution of the above wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... failed to attend the Personal Hearing on 23.10.2019 and filed for adjournment. Subsequently he appeared for Personal Hearing on 11.11.2019 and reiterated the submission already made in the application. 6. Applicant's Interpretation of Law and Facts: The applicant submits that they are eligible to avail the ITC on all the goods and services being utilised in execution of the works, in view of the exclusion clause U/S. 17(5)(c) of the CGST Act, 2017. According to this clause, where the input services/goods are utilised for further supply of works contract service there is no embargo in availing the ITC on the goods and services utilised in execution of works contracts. In the instant case, as explained supra the applicant being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following namely: works contract services when supplied for construction of an immovable property (other than Plant and Machinery) except where it is an input service for further supply of works contract services ITC for works contract can be availed by the applicant as he is in the same line of business and entitled to take ITC on the tax invoice raised by his supplies as his output is works contract services. Now we examine whether the restriction of ITC is applicable as per Section 17 (5)(d). Section 17 (5)(d) reads as Goods or 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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