9911796707
TMI Blog2024 (7) TMI 982X X X X Extracts X X X X X X X X Extracts X X X X ..... he explanation, The ITC that the applicant wishes to avail is on capital goods viz cables/wires, equipment viz 750 meters new 66 KV S/Cable (3+1), 630 mm square aluminium corrugated sheath/G cable line for installation of 66 KV feeder bay at sub-station of GETCO. On a specific query raised during the course of personal hearing, it was stated by the representative of the applicant that though these are underground cables, they are not fixed to earth; that they are kept in a duct and can be removed/opened as and when any maintenance is required to be done on these goods - the ITC sought by the applicant is not blocked by sub-sections 17 (5)(c) (d), ibid. What is left to be examined now is whether the transfer of the service line to GETCO under an agreement, on a stamp paper of Rs. 300/- at zero value [as claimed by the applicant), which even in terms of the agreement with GETCO [as reproduced supra], would remain the property of GETCO, would have any bearing on the availment of ITC - there is no provision under the CGST Act, 2017 which bars availment of ITC by the applicant if subsequently the capitalized goods are handed over to GETCO/others. However, we would like to point out to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m M/s. H M Electrical, Bharuch, Gujarat, the details of which are as under: Particulars Supply of material Installation work Total (Rs.) Basic Value 95.41.500 32,80.750 1,28,22,250 GST @ 18% 17.17,470 5,90,535 23.08.005 Total (Rs.) 1,12,58,970 38,71,285 1,51,30,255 GETCO, in addition to the above will charge supervision charges of Rs. 37,45,948 + GST @ 18% ie Rs. 6,74,271/-. 6. It is further informed by the applicant that the aforementioned expenditure will be borne by them subsequently will be transferred to GETCO through an agreement on a Rs. 300 stamp paper at zero value that it will be a property of GETCO. 7. It is the applicant's claim that they have satisfied all the four conditions in terms of section 16 of the CGST Act, 2017, viz (i) that they are in possession of the tax invoice issued by the supplier; (ii) that they have received the goods and service; (iii) that the tax charged has been paid to the Government that the return has been furnished u/s 39, ibid', (iv) that the payment [i.e. Value and GST] has been made to the supplier within 180 days. 8. The applicant further states that they have capitalized the basic value of the supply of material and installation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso mean a reference to the same provisions under the GGST Act. 14. We have considered the submissions made by the applicant in their application for advance ruling as well as the oral submissions additional submissions made during the course of personal hearing. We have also considered the issue involved, the relevant facts the applicant's submission/interpretation of law in respect of question on which the advance ruling is sought. 15. Before setting out the contentions and our findings thereto, it would be prudent to reproduce the concerned sections, relevant to the issue viz,- Section 16. Eligibility and conditions for taking input tax credit.- (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49. be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he value of supply of goods or services or both along with tax payable thereon. (3) Where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under the provisions of the Income tax Act, 1961 (43 of 1961). the input tax credit on the said tax component shall not be allowed. (4) A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the 6 [thirtieth day of November] following the end of financial year to which such invoice or [****] debit note pertains or furnishing of the relevant annual return, whichever is earlier. [ Provided that the registered person shall be entitled to take input tax credit after the due date of furnishing of the return under section 39 for the month of September, 2018 till the due date of furnishing of the return under the said section for the month of March, 2019 in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18, the details of which have been uploaded by the supplier under sub-section (1) of section 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:- (c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service: (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 clauses (c) and (d), the expression construction includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property: 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 (ii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... long with tax has been paid within a period of one hundred and eighty days from the date of issue of invoice. It is the applicant's case that the conditions specified under section 16, supra, stands fulfilled. The applicant's averment to this extent appears to be correct. 19. Likewise, section 17 of the CGST Act, 2017, deals with apportionment of credit and blocked credit. From what is relevant, we find that ITC is blocked in the following cases [relevant to the issue on which ruling is sought] viz,- where the goods or services are used partly for the purpose of any business and partly for other purposes or exempt supply, the amount of credit shall be restricted to what is attributable for business; that the value of exempt supply shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of schedule II, sale of building; that ITC shall not be available in respect of 17 (5) (c) and (d), which is reproduced supra in paragraph 15 above. The explanation to the clauses (c) and (d) of section 17, ibid, further states that construction includes re-construction, reno ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
