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TMI Blog2019 (7) TMI 1736X X X X Extracts X X X X X X X X Extracts X X X X ..... question have been added to the building already constructed. Therefore, the Input tax credit is not allowed as per Section 17(5)(d) of the CGST Act, 2017 on all the items in question. The plant and 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 but with some exclusions as above. In the present case the applicant admits that the Sewage Treatment Plant is attached with the civil structure of the building. Thus, it is clear that it is a part of the civil structure of the building and part of the building so constructed. Therefore the applicant s contention that the Sewage Treatment Plant is covered under the definition of plant and machinery is rejected because it is covered under the exclusion (i) of the explanation - as per the definition of goods some movable property is excluded from the category of goods whereas at the same time, some immovable properties are treated as goods. But the terms movable and immovable property have not been defined under the GST Act. In laymen terms, any goods that can move ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver be removed. If the article cannot be used without fastening or attaching it to the earth and it is not removed under ordinary circumstances, it may be considered permanently fastened to anything attached to the earth. The ITC of GST paid on the Sewage treatment plant; Fire Fighting System; Cable for transmission of electricity from feeding point to the building; other material such as PCC Poles, structural steel, cable end kit, HDPE pipes, GO switch etc. Laying of Cable and electrical installations for transmission of electricity is not admissible to the applicant. - SANGEETA KARMAKAR AND MADHUBALA, MEMBER Present for the Applicant : Sh. Manoj Makkar (Adv.) Sh. Arvind Bisla (Adv.) 1. Brief facts: 1.1 M/s. Synergy Global Steel Pvt. Ltd., Plot No. 30, Industrial Area, Dharuhera, Rewari, State- Haryana having GSTIN Number 06AAJCS8313G1ZB (hereinafter referred as the applicant ), have got a building constructed at Plot No. 30, Industrial Area, Dharuhera for the purpose of leasing or renting out the same for running an industry. 1.2 The applicant has stated that the ITC on works contract service or goods or services or both received for construction of immovable property (other th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the GST Act dealing with apportionment of credit and blocked credits reads as under: (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:- (b) the following supply of goods or services or both- (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purpose specified therein, life insurance and health insurance: Provided that the input tax credit in respect of such goods or services or both shall be available, where an inward supply of goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply; 4.3 In the present application the applicant contends that they have got a building constructed for the purpose of leasing or renting out the same for running an industry. Input tax credit on leasing is not allowed as per Section 17 (5) (b)(i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property; In the explanation given above for the purposes of clauses (c) and (d) of Section 17 (5) of the CGST Act, 2017; it is clear that construction includes additions to the extent of capitalisation, to the said immovable property. It means the applicant has constructed a building for the purpose of leasing or renting out the same for running an industry and the goods in question have been added to the building already constructed. Therefore, the Input tax credit is not allowed as per Section 17(5)(d) of the CGST Act, 2017 on all the items in question. 4.6 The explanation to Section 17(5) (d) of the GST Act reads as under:- Explanation :- For the purposes of this Chapter and Chapter VI, the expression plant and 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 but excludes- (i) land, building or any other civil structures ; (ii) telecommunication towers; and (iii) pipelines laid outside t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bedded for the permanent beneficial enjoyment of that to which it is attached, qualifies to be attached to the earth. In the present case, the applicant constructed a building for the purpose of leasing or renting out the same for running an industry. The said building is imbedded in the earth as per clause (b) above and the goods in question are attached to the walls or building so imbedded in the earth for the permanent beneficial enjoyment of the building. As far as, the contention of the applicant regarding installation of Sewage Treatment Plant and Fire-fighting system to be covered under plant and machinery is concerned, it is stated by the applicant that the same is installed as per statutory requirement. Thus it is clear that these goods have been installed in the building for the permanent beneficial enjoyment of the building. Therefore, Input tax credit is not allowed as per Section 17 (5) (d) of the CGST Act. 4.10 As regards, the contention of the applicant regarding Cable and other material such as PCC Poles, structural steel, cable end kit, HDPE pipes, GO switch etc. to be covered under capital goods, it is clear that these goods also have been installed in the buildin ..... 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