expression “plant or machinery” - GST Ready Reckoner - GST

Meaning of expression plant or machinery Interpretation of clause (d) of sub-section (5) of Section 17 of the CGST Act- The explanation to Section 17 of the CGST Act defines plant and machinery . The explanation seeks to define the expression plant and machinery used in Chapter V and Chapter VI. In Chapter VI, the expression plant and machinery appears in several places, but the expression plant or machinery is found only in Section 17(5)(d). If the legislature intended to give the expression plant or machinery the same meaning as plant and machinery as defined in the explanation, the legislature would not have specifically used the expression plant or machinery in Section 17(5)(d). The legislature has made this distinction consciously. Therefore, the expression plant and machinery and plant or machinery cannot be given the same meaning. It may also be noted here that the expression plant or machinery is used in dealing with a peculiar case of goods or services being received by a taxable person for the construction of an immovable property on his own account, even when such goods or services or both are used in the course of furtherance of business. Therefore, if the expression plant or machinery is given the same meaning as the expression plant and machinery as per the definition contained in the explanation to Section 17, we will be doing violence to the words used in the statute. While interpreting taxing statutes, it is not a function of the Court to supply the deficiencies. This Court has laid down the functionality test. This Court held that whether a building is a plant is a question of fact. This Court held that if it is found on facts that a building has been so planned and constructed as to serve an assessee s special technical requirements, it will qualify to be treated as a plant for the purposes of investment allowance. The word plant used in a bracketed portion of Section 17(5)(d) cannot be given the restricted meaning provided in the definition of plant and machinery , which excludes land, buildings or any other civil structures. Therefore, in a given case, a building can also be treated as a plant, which is excluded from the purview of the exception carved out by Section 17(5)(d) as it will be covered by the expression plant or machinery . We have discussed the provisions of the CGST Act earlier. To give a plain interpretation to clause (d) of Section 17(5), the word plant will have to be interpreted by taking recourse to the functionality test. [CHIEF COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX ORS.- 2024 (10) TMI 286 - SUPREME COURT]