TMI Blog2023 (8) TMI 1201X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the business for movement of goods in its place of business as input tax credit. The Applicant has submitted the copy of application in Form GST ARA-01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.0 The Applicant have stated, inter alia,- that they have purchased a JCB for the purpose of movement of goods inside the factory; that the relevant invoice has been enclosed by the dealer at the time of application uploaded seeking for Advance Ruling; that the JCB was bought from Suryabala Earth Movers vide Invoice No. 2071350578 dated 9/3/2021 by paying CGST of Rs. 2,13,639.57 and SGST of Rs. 2,13,639.57; 2.1 The applicants have cited the Advance ruling given to M/s Purewal Stone Crusher, Ramnagar Nainital (Uttarakhand) under the advance ruling no. 08/2018-19 dated 11th September 2018. The relevant portions of the cited order were given by the applicant hereunder: We find that the Section 17(5) of the Act restrict availment of ITC in respect of GST paid on inputs, capital goods and services. The relevant portion of the same is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ude the vehicles used as mining equipment, like, tippers, dumpers etc. Therefore, under the provisions of GST law, the GST paid on purchase of Pockland, JCB. Dumper Tipper used for transportation of goods will be allowed as ITC. Our view get support from answer to question 21 of FAQ published in GST Sectoral Series - Mining and the same is extracted as under :- Question 21 : Will GST charged on purchase of all earth moving machinery including JCB, tippers, dumpers by a mining company be allowed as input credit? Answer : The provision of Section 17(5)(a) of the CGST Act, 2017 restricts credit on motor vehicle for specified purposes listed therein. Further, in terms of the provision 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 Vehicles Act, 1988, which does not include the mining equipment, viz., tippers, dumpers. Thus, as per present provisions, the GST charged on purchase of earth moving machinery including tippers, dumpers used for transportation of goods by a mining company will be allowed as input credit 3.0 The State Jurisdictional autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions/Additional submissions made during personal hearing and thereafter the comments of the Jurisdictional Authority. The Applicant is before us seeking ruling on the following question:- Availability of GST paid by the applicant at the time of purchase or repairs including spares w.r.t Vehicles -JCB used by the business for movement of goods in its place of business as input tax credit. 6.1 The applicant is engaged in the manufacture and supply of Sago (Sabudhana) from Tapioca roots. Sago is manufactured by the applicant by crushing tapioca roots and the starch extracted is stored in large tanks. The starch is washed again, rolled into granules, roasted and then dried. The resultant sago is supplied on payment of appropriate tax. 6.2 The Applicant has stated that they have purchased a JCB 3DX model for the taxable value of Rs. 23,73,773/- with CGST Rs. 213639.57 and SGST Rs. 213639.57 from M/s Suryabala Earth Movers, Salem-636005 vide Invoice No. 2071350578 dated 09-03-2021. According to the applicant, the JCB that is purchased is used for in-house transport of starch from one tank to another or to any machines that required it as it would speed up the production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding twenty-five cubic centimetres; 6.6 Further, in the FAQ published in GST Sectoral Series - mining the question regarding availability of input credit on earth moving machinery including JCB, tippers, dumpers is answered in detail. The relevant extract of the same is as under: Question 21: Will GST charged on purchase of all earth moving machinery including JCB, tippers, dumpers by a mining company be allowed as input credit? Answer : The provision of Sec. 17(5) (a) of the CGST Act, 2017 restricts credit on motor vehicle for specified purposes listed therein. Further, in terms of the provision 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, which does not include the mining equipment, viz., tippers, dumpers. Thus, as per present provisions, the GST charged on purchase of earth moving machinery including tippers, dumpers used for transportation of goods by a mining company will be allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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