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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 ..... ce 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 - In the present case, the breakwater wall or accropode that are essential, certainly do not qualify as plant and machinery. The breakwater wall can hardly be called plant or machinery . Accropode loses its identity when breakwater wall is constructed using accropode. Explanation to Section 17 also provides that plant and machinery should be used for making outward supply of goods or services. In the instant case, breakwater wall is used for protecting the vessel from tides while unloading the LNG received and not for making outward supply of goods or services. Therefore, even on this count, petitioner does not satisfy the condition provided in the Explanation to Section 17 to be eligible for ITC. There are no infirmity in the impugned order - there is no merit in the petition - petition dismissed. - K. R. SHRIRAM JITENDRA JAIN, JJ. For the Petitioner : Mr. Sirram Sridharan a/w Mr. Shanmuga Dev. For the Respondent Nos. 1, 4, 5 6 : Ms Jyoti Chavan, Addl GP. For the Respondent Nos. 2 3 : Mr. Dhananjay Deshmukh i/b Mr. Jitend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 facts and circumstances of the case and as per the law, the applicant is not eligible to avail/utilize the input tax credit of the taxes paid in terms of section 16 read with section 17 of the MGST ACT/CGST ACT (CGST/SGST/IGST) to the supplier of goods/ services on the construction of the break water wall, which is an important and integral part of the existing jetty and very much required for the purpose of safety and longevity of the jetty and is imperative for making the existing jetty as fully workable as an all-weather jetty and hence improves the operational efficiency of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is an immovable property and it can be considered as plant and machinery as all immovable structures are not disqualified from being covered in terms of plant and machinery . (c) That Section 17 (5) (d) of the CGST Act carves out an exception for plant and machinery and, therefore, if goods or services or both are received from taxable person for construction of plant and machinery, then ITC shall be available. (d) That in the explanation to Section 17 of Chapter V of the CGST Act, plant and machinery is defined to mean apparatus, equipment and machinery fixed to the earth by foundation and structural support that are used for making outward supply of goods or services or both. Apparatus has been defined in various 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I, 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 the factory premises. The reading of Sub-Section 5 (d) shows that plant and machinery though immovable are eligible for ITC. What is plant and machinery is defined in the explanation and it says the input must be used: (a) for making the plant and machinery which should be apparatus, equipment and machinery; b) it is used for making outward supply of goods or services and c) it should be neither: i) land, building or any other civil structures; ii) telecommunication towers and ; iii) pipelines laid outside the factory premises. 14. As seen from the facts presented before us, petitioner provides the services of regassification of LNG to Ratnagiri Gas and Power Company for which LNG is supplied to them by LNG carrier which are berthed at the captive jetty. LNG is then transferred to petitioner s unit for regas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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