The High Court examined the constitutional validity of exclusion ...

Functionality test for 'plant & machinery' status under GST scrutinized.

Case Laws GST

October 24, 2024

The High Court examined the constitutional validity of exclusion (iii) to the Explanation to Section 17 of the CGST Act regarding the applicability to service providers. The authorities analyzed the matter from the perspective of definitions of 'plant' and machinery, relying on dictionaries, but did not focus on the functionality test. The Supreme Court held that a fact-finding inquiry is necessary in each case, applying the functionality test. As the Petitioner had yet to establish the requisite infrastructure when the Advance Ruling Authorities decided, the High Court remanded the matter to the AAR for a fresh ruling considering the Supreme Court's observations, given the limited scope of judicial review on factual matters unless perversity is demonstrated. The AAR and Appellate Authority's orders were set aside.

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The High Court examined the constitutional validity of exclusion ...

Functionality test for 'plant & machinery' status under GST scrutinized.

Case Laws GST

October 24, 2024

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