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TMI Blog2024 (7) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (PER K. R. SHRIRAM J.) : 1. Ratnagiri Gas and Power Pvt Ltd., a joint venture of NTPC, GAIL and Maharashtra State Government, was incorporated in July-2005 to take over the Dabhol Power Company by Enron Corporation, USA and others. Through a scheme of demerger, duly approved by the National Company Law Appellate Tribunal, Ratnagiri Gas and Power Pvt Ltd. retained the power plant whereas the LNG (Liquid Natural Gas) Terminal was transferred to petitioner. Post demerger, petitioner is engaged in regassification of LNG at its regassification plant situated in Dabhol. Petitioner is a subsidiary company of GAIL (India) Ltd. a Government of India undertaking. 2. Under the GST regime, according to petitioner, the activity of regassification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ety of the jetty and the LNG carriers so that LNG carriers could berth and unload LNG even during monsoon season. Petitioner issued a notice inviting tender. Larsen and Toubro Ltd. bid and was awarded the contract. Petitioner spent approximately Rs. 600 crores of which, approximately Rs. 360 crores was towards supply of material and Rs. 240 crores was towards supply of services. 6. Petitioner filed an application for advance ruling before the Maharashtra Authority for Advance Ruling (Respondent No. 5) under Section 97 of the Central Excise Goods and Services Tax Act, 2017 (CGST Act) and the Maharashtra Goods and Services Tax Act, 2017 (MGST Act). Petitioner sought advance ruling in respect of the following questions: "1. Whether on the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be entitled to any Input Tax Credit (ITC) on the construction / reconstruction of the breakwater. 8. As against the above order, petitioner preferred an appeal before respondent no. 6 being the Maharashtra Appellate Authority for Advance Ruling for Goods and Services Tax under Section 101 of the CGST Act and MGST Act. Respondent No. 6, by an order dated 6th November 2019, confirmed the order passed by respondent no. 5. It is this order of respondent no. 6 that is impugned in this petition. 9. We have gone through the facts of the case, documents on record and considered the submissions made by Mr. Sridharan, Ms Chavan and Mr. Deshmukh. 10. The issue is whether petitioner will be able to claim the ITC on the construction / reconstruct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s dictionaries as an integrated group of materials or devices used for a particular purpose or a collection or set of materials, implements or utensils for a given work etc. The analysis of the definition given in various dictionaries would show that "apparatus" is a combination of materials and other things having a particular function or intended for a specific use. (e) That the complete breakwater shall comprise of accropodes to be installed on core structure of rocks and 1.5 to 3 MT secondary armour layer of boulders. The uneven surface of accropodes leads to improvement of inter-locking capacity and, therefore, the breakwater consisting of accropodes, rocks and boulders is clearly covered by the term "apparatus" since it is a collec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the CGST Act reads as under: "17. Apportionment of credit and blocked credits.- ********************** 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:- ********************** (d) 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 in the course or furtherance of business. ************************* Explanation.-For the purposes of this Chapter and Chapter VI, the expression "plant and machinery" means apparatus, equipment, and machinery fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ructed can be considered to be "plant and machinery"? Mr. Sridharan submitted that even though breakwater is an immovable property, it is covered under the term "plant and machinery" since accropode which are used to construct the breakwater are interlocking device fixed to the earth by foundation and those are "apparatus". 16. The dictionary meaning used by respondents for the term "plant" indicates that it would mean and include a place where the industrial activity takes place and/or factory where certain material is produced or machinery are used to carry out certain process or production. Mr. Sridharan in fairness stated that the breakwater or accropode cannot be called as "machinery". Even if we take both plant and machinery together ..... X X X X Extracts X X X X X X X X Extracts X X X X
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