GST AAR Allows ITC on Inputs & Services Used for Setting Up CCV Tower for Cable Manufacturing

In re Apar Industries Ltd (GST AAR Gujrat)

In the matter of In re Apar Industries Ltd., the Gujarat Authority for Advance Ruling examined whether input tax credit (ITC) could be availed on inputs and input services used for setting up a Continuous Catenary Vulcanization (CCV) Tower used in the manufacture of high-voltage cross-linked polyethylene (XLPE) insulated electrical cables.

The applicant, engaged in manufacturing conductors, cable solutions, telecom solutions, specialty oils, and lubricants, was establishing a new factory in Vapi, Gujarat. The facility included a conductor manufacturing unit, CCV Tower, CCV Cable unit, and HT/LT unit containing heavy machinery essential for cable production.

The CCV Tower was described as a specialized vertical steel structure designed to maintain the technical elevation and catenary angle required during the vulcanization process. According to the applicant, the tower enabled controlled heat and pressure distribution necessary for cross-linking polymer molecules and ensuring insulation quality in the cables. The structure housed various machines and systems at different levels, including pay-off stands, accumulators, conductor guiding systems, extruders, caterpillar units, cooling systems, and raw material handling areas.

The applicant had engaged an EPC contractor for engineering, procurement, and construction of the tower. GST paid on goods and services used for constructing the tower was sought as ITC. The applicant argued that the CCV Tower constituted an integral structural support for the manufacturing machinery and therefore qualified as “plant and machinery” under the Explanation to Section 17(5) of the CGST Act. Consequently, the ITC restriction under Sections 17(5)(c) and 17(5)(d), relating to immovable property, should not apply.

The applicant relied on statutory provisions, dictionary meanings of “structural support,” CBIC Circular No. 219/13/2024-GST, and several judicial precedents, including the Gujarat Appellate Authority for Advance Ruling decision in KEI Industries Ltd., where ITC on construction of a concrete tower supporting vulcanization lines had been allowed. The applicant contended that the CCV Tower was not an ordinary civil structure but an essential support system without which the manufacturing process could not function.

The Authority examined the manufacturing process, the functional role of the tower, and the provisions of Section 17(5) of the CGST Act. It observed that “plant and machinery” includes apparatus, equipment, machinery, and their structural supports fixed to earth for making outward supplies, while excluding land, buildings, and other civil structures.

The Authority noted that the CCV Tower provided the necessary structural support, elevation, alignment, and operational stability for the vulcanization machinery. It accepted the applicant’s contention that the steel structure was indispensable for supporting and operating the CCV line. The Authority further observed that the exclusions under Section 17(5) did not cover such structural supports forming part of plant and machinery.

The ruling also referred to the CBIC clarification regarding ducts and manholes used in optical fiber cable networks, where ITC had been allowed because such structures formed part of plant and machinery. Drawing a similar analogy, the Authority held that ITC on inputs and input services used for constructing the steel CCV Tower could not be restricted under Sections 17(5)(c) and 17(5)(d).

Accordingly, the Gujarat AAR ruled that the applicant was eligible to avail ITC on inputs and input services used in setting up the CCV Tower for manufacturing insulated cables, and such credit was not barred under Section 17(5)(c) or Section 17(5)(d) of the CGST Act, 2017.

FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, GUJARAT

M/s. Apar Industries Ltd., Survey No.114-116, 121, 228, Khatalwada- Tumb road, Khatalwada, Valsad, Gujarat-396120 [for short — applicant’ J, is registered under GST and their GSTIN is 24AAACG1840M3ZP.

2. The applicant is engaged in manufacturing and supplying conductors, cable solutions, telecom solutions, Speciality oils, lubricants etc. They arc setting up a new factory at Vapi, Gujarat for the manufacturing of high-voltage cross-linked polyethylene (XLPE) insulated electrical cables and conductors. At the new facility, the applicant will set up the following production units which are integral to the manufacture of insulated electrical cables: (i) a Conductor manufacturing unit. (ii) a continuous Catenary Vulcanization Tower (`CCV Tower’). (iii) CCV Cable unit, and (iv) a High-tension/Low-tension unit which will house heavy duty machinery including extruders, take-up-reels, vulcanization tubes and chambers an .1) specialized equipment essential for the manufacturing and testing of high-quality, insulated electrical cables.

3. The CCV tower is a vertical steel structure specially designed to suit the technical elevation needed for the machinery and equipment utilized in the vulcanization process and these machines arc to be necessarily installed at a catenary angle (a natural hanging curve) with strict dimensional tolerances which is essential during the vulcanization process for applying and distributing uniform heat and pressure to cross-link the polymer molecules on receiving the conductors from the Conductor Manufacturing unit. In the CCV towers, the cross-linking is conducted in extruders hung at a catenary angle by injecting nitrogen or steam/inert atmospheres at pressures upto 12 bar and temperatures between 250 degrees centigrade and 400 degrees centigrade. On successful cross-linking, the take up reels at the end of the line collect the insulated conductor for further processing. The gravitational path of the cable set up in a catenary angle enables precise control of line tension, minimizes elongation or sag, and maintains insulation concentricity within acceptable tolerances, which are essential to ensure the production of high quality insulated cables. A layout plan of the CCV tower is as under:

4. The CCV tower has primarily two sections i.e. (i) the machinery section, wherein controlled functional segregation of processes such as extrusion, cooling and take-up, arc carried out in designated zones ensuring thermal stability, process integrity and safe operational access for monitoring and maintaining a high precision, continuous manufacturing line and (ii) the raw material section, wherein raw materials and auxiliary inputs essential for cable production are: kept . for continuous supply to the machineries set at different levels. The key machines and their functions on each level of the CCV tower are as follows:

5. The levels of CCV tower are solely determined by the functional requirements of the vulcanization process, allowing for a seamless and continuous manufacturing process from raw conductors to the insulated products, hence the overall design and layout of a CCV tower is highly optimized for productivity, efficiency and safety.

6. The applicant has engaged a third party M/s. Suraj Buildcon Pvt. Ltd. for the engineering, procurement and construction (LPC) of the CCV tower. The (EPC) vendor will raise invoices on the applicant for the supply of goods and services, along with the applicable GST. The expenses incurred towards such goods and services arc capitalized by the applicant in its books of account, except the GST amount which should be available as ITC. Besides, there are other plant and machinery that are fixed through strong foundations inside the Conductor Manufacturing area, CCV Cable area, FIT/LT area for which the applicant would be availing ITC. Given the technical and operational requirements of setting up a vertical CCV tower for manufacture of insulated electrical cables, the applicant is of the opinion that the CCV tower is an integral structural support for various machines used in the manufacturing of insulated cables, hence qualifies as ‘apparatus’ and therefore to be covered in the term “plant and machinery”. Hence, ITC of such GST is not blocked in terms of Section 17(5)(c) and 17(5)(d) of the CGST Act 2017.

7. The applicant has put forward the following question for Advance Ruling:

Whether the applicant is eligible to avail input tax credit on inputs and input services used in the setting up of the continuous catenary vulcanization tower at the factory of the applicant for the manufacture of insulated cables, and not restricted in terms of Section 17(5)(c) and 17(5)(d) of the CGST Act 2017.

?

8. Applicant’s interpretation of law is as under:

• Applicant’s question is covered under Section 97(d) of the CGST Act 2017.
• Section 16(1) of the CGST Act entitles a taxpayer to avail credit of input tax charged on any supply of goods and/or services made to him and used by him in furtherance of his business subject to certain restrictions and conditions as specified in Section 16(2) and Section 17(5) of the CGST Act. Section 17(5) of the CGST Act stipulates the situation wherein ITC shall not be available, notwithstanding anything contained in Section 16(1) of the said Act. In terms of Section 17(5)(c) and 17(5)(d) of the CGST Act, ITC cannot be availed on Works Contract and goods and services utilized for the construction of immovable property (other than plant and machinery), including when such goods or services are used in the course or furtherance of business. Sections 17(5)(c) and 17(5)(d) read as under:

“17. Apportionment of credit and blocked credits.

—

(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (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 and machinery) on his own account including when such goods or services or both are used in the course or furtherance of his business.”

• As per above provision, GST paid on works contract, goods and services received by a taxpayer for the construction of an immovable property is not eligible for ITC. An important exception is when the immovable property is in the nature of plant and machinery, then the works contract and /or goods and services received for construction of such immovable plant and machinery will be eligible for ITC and will not be hit by the restriction under Section 17(5)(c) or Section 17(5)(d) of the CGST Act.
• The term “plant and machinery” for the purposes of interpretation of the said provision

” For the purpose 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;

(i) telecommunication towers; and

(ii) pipelines laid outside the factory premises;

• CCV tower made of specialised steel is an integral structural support necessary for the vulcanization process in the manufacturing of insulated cables and thus covered under the term “plant and machinery” as defined above.

• In order to gauge the significance of the vertical CCV tower as structural support to the equipment engaged in the production of high voltage insulated electrical cables, the following points should be noted:
  • A specific height is required for the long continuous path for the vulcanization process. The cables need a long run for curing tube, cooling etc. A vertical/higher structure provides space, allowing long lengths of cable to sag in a controlled manner (catenary angle) and move under tension without excessive bending.
  • The “catenary” vulcanization method uses the natural gravity of the earth to sag the cable under tension to help ensure uniform tension, avoid deformations or marks, and maintain insulation quality. The vertical tower, with its machines placed at different levels, allows the cable to hand and sag between supports.
  • The CCV tower supports the CCV line machines: the curing tubes, extruders, take-ups, payoffs, maybe cooling sections, moving caterpillars, etc. The structure must carry these loads, support access to floors, and maintain platforms etc.
  • Some parts (cure tubes) operate under high temperature and often pressure (or inert atmosphere, e.g. nitrogen) to vulcanize the insulation. The CCV Tower (support structure) must maintain alignment, shape, scaling etc. This helps in achieving proper insulation cross-section.

• In view of the foregoing, it is evident that the equipment inside the CCV Tower must be placed at specific heights to maintain a catenary angle. It is a technological necessity without which the production of high voltage insulated electrical cables cannot take place.
• “Structural support” has not been defined in the CGST Act. [he said word has been commonly understood as :

1. As per Cambridge, ‘structural’ means ‘relating to the structure of a building or similar object’ whereas ‘support’ means ‘something that holds something firmly or carries its weight, especially from below to stop it from falling’.

2. As per Oxford (Learner’s), ‘structural’ means ‘connected with the way in which something is built or organized’ whereas `support’ means ‘thing that holds something and prevents it from falling’.

3. As per Merriam Webster, ‘structural’ means ‘of, relating to, or affecting structure whereas ‘support’ means ‘to hold up or serve as a foundation or prop for’.

• From the above meanings, it arises that ‘structural support’ refers to a physical or foundational. element that forms part of a larger structure and serves the purpose of holding, bearing, or stabilizing loads and it ensures that the structure or equipment it supports remains secure from external forces. A ‘structural support’ is a component designed and constructed to hold up or strengthen a building, machine or installation, ensuring it remains stable and functional.
• Therefore, the CCV tower provides structural support with the necessary height and infrastructure to hang the vulcanization tube securely while maintaining the structural integrity (correct curvature, alignment, and tension), stability, precision and overall efficiency for the insulation of the cables. The technical brochure provided by the Equipment Manufacturer of the CCV machinery also supports this understanding by providing guidance on the specific manner in which the CCV tower is to be set up. Thus, CCV tower is an essential structural support to the entire CCV machine line, which is squarely covered within the definition of ‘plant and machinery’ under Section 17(5).
• Reliance is placed on the ruling of the IIon’ble Gujarat Appellate Authority of Advance Ruling in M/s. KM Industries ltd. [2025(8) TMI 551] wherein it was held that the appellant was eligible to avail ITC on the inputs and input services used for the construction of a concrete tower to support and erect the vertical continuous vulcanization (VCV) lines. Any contrary finding would be inconsistent as the higher authority has already ruled favorably in such facts involving the same EPC vendor i.e. Suraj Buildcon Private Limited.
• Reliance is placed on the Circular No.219/13/2024-GST dated 26.06.2024 wherein the CI3IC provided clarification on the availability of ITC on ducts and manholes used in a network of optical fiber cables (OFCs) in terms of Section 17(5) of the CGST Act.
• They have also relied on the judgement in the case of Atriwal Amusement Park ak20 (40) GSTL 80 (AAR-GST-MP)} wherein the ITC paid on the input goods and input services used in the construction of the steel support structure to install the water slides was allowed
• Accordingly, on application of the above understanding of ‘structural support’ to the applicant’s case, they have submitted that the structural support provided by the CCV tower in the vulcanization process ought to be included in the ‘plant and machinery’ as provided in Section 17 of the CGST Act. Reliance is placed on the decision of Coral Manufacturing Works India Pvt. Ltd. [92023)9 Centax 121 (App-AAR-GSTR).
• In light of the scope of ‘machinery’ as generally understood and interpreted by courts, the applicant submits that the CCV machinery including extruders, caterpillars, take up reels etc. is undoubtedly identifiable as machinery used in the manufacture of insulated cables. In view of the above, CCV tower is an essential and integral structural support in the manufacturing of high voltage insulated electrical cables, that it qualifies as ‘apparatus’ within the definition of plant and machinery, hence ITC of GST paid for the input and input services in relation to the setting up of CCV tower line is not restricted vide Sections 17(5)(c) & 17(5)(d) of the CGST Act as it is squarely covered within the definition of ‘plant and machinery.’
• For the definition of the term ‘apparatus’, reliance is placed on the dictionary meanings of the term in Modern Malleable Ltd. vs. CCE [2008(225) ELI 460 (Tri.-Kol)].
• The applicant has submitted that the applicability of functional test to determine whether a subject is a ‘plant’ has been considered by the Hon’ble Apex Court in Chief Commissioner of CGST vs. Safari Retreats [2024(131)GSTR 184 (SC)_.1whcrein in the context of availability of ITC in relation to buildings (in the nature of shopping malls), which were offered on lease (in furtherance of business), the Apex Court analyzed the construct of Section 17(5)(c) & 17(5)(d), including the explanation thereof.
• The applicant has also relied on the following landmark decisions wherein different immovable properties have been held to be a ‘plant’ based on the functionality test:

1. CTI vs. B. Venkata Rao 1(2000) 243 ITR 811.

2. IRC vs. Barclay Curie & Co. Ltd. ((1969) 1 WI,R 6751.

3. CIT vs. Victory Aqua Farm Ltd. 92016) 16 SCC 5531.

4. Cooke vs. Beach Station Caravans (1974 1 WLR 1398).

5. Anchor International Ltd. vs. CIR [(2004) Scot CS 281].

• The applicant also submits that the Hon’ble Supreme Court in 13harti Airtel ltd. Vs. Commissioner of Central Excise 1(2024) 132 GSTR 4041 in determining the claim of Cenvat Credit in the context of telecommunication towers, applied the functionality test (para 11.9.7) to hold that the attachment of tower to the earth/building is not for the benefit of the land or building but for better functioning of the antenna which is fixed on the tower. It was also held that without the tower, the antenna cannot effectively function as the tower hoists the antenna at the requisite height, hence, the tower is to be considered as an `accessory’ of the antenna. Hence, the vertical CCV towers is specifically designed to assist the vulcanization machines and provides structural support to their operation. Therefore, it may be considered as ‘plant and machinery.
• Applicant has also placed reliance in the case of S.K. Tulsi & Sons vs. CIT (1991) 187 FIR 685 (All)] wherein the Court observed that a building or structure which constitutes an apparatus by means of which business activities were carried out is a plant.
• Reliance is also placed on the Kerala High Court’s decision in State of Kerala vs. Ambuja Cements Ltd. [2020 (1) KIIC 884] which held that ‘silos’ (a civil structure for storing cement) cannot be identified as merely a ‘civil structure’ when it forms an integral part of the plant and machinery, as it gets merged as a ‘plant’ performing a specific function.
• CCV tower is also not ordinarily meant for civil uses, such as any other civil structure of bridges, roads, dams, tunnels etc. as structures for civil purposes that serve the general public. Another plausible interpretation of the term ‘any other civil structure’ is based on the legal principle of ejusdem generis, which essentially means that where there are general words following any specific words, then general words must be confined to the things of the same kind as those specified. By following the principle of ejusdem generis, the expression ‘any other civil structures’ must be read to denote structures similar to ‘land’ and ‘building which arc basically location of production where production activities take place and not something which are ‘means of production’ essential for the creation of economic activity.
• The provisions of the CGST Act itself provides that when setting up of plant and machinery requires a support structure and/or foundation for installation, without which the machinery and equipment cannot function, such support structures are also included in the definition of ‘plant and machinery’ and arc eligible for ITC as per Section 16 of the COST Act read with Section 17 of the CGST Act.

9. Personal hearing was granted on 08.04.2026 wherein Shri Amit Laddha, Advocate, appeared on behalf of the applicant and reiterated the facts & grounds as stated in the application. During the course of hearing, the representative of the applicant has submitted a set containing relevant provisions of the Central Goods and Services Tax Act, 2017and copies of supporting judgements.

Discussion and findings

10. At the outset, we would like to state that the provisions of both the COST Act and the GGST Act are the same, except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act.

11. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made both oral and written during the course of personal hearing. We have also considered the issue involved, the relevant facts & the applicant’s submissions/views in respect of question on which the advance ruling is sought. We also considered the written submission provided by the Assistant Commissioner of the State Tax(1) , Unit-74, Vapi dated 06/03/2026.

12. We find that the applicant is setting up a new factory at Vapi, Gujarat for the manufacturing of high-voltage cross-linked polyethylene (XLPE) insulated electrical cables and conductors and at the new facility, the applicant will set up the production units which are integral to the manufacture of insulated electrical cables like a Conductor manufacturing unit, a continuous Catenary Vulcanization Tower (`CCV Tower’), CCV Cable unit, and a High-tension/Low-tension unit which will house heavy duty machinery, including extruders, take-up-reels, vulcanization tubes and chambers and other specialized equipment essential for the manufacturing and testing of high-quality, insulated electrical cables. The CCV tower is a vertical steel structure specially designed to suit the technical elevation needed for the machinery and equipment utilized in the vulcanization process and these machines are to be necessarily installed at a catenary angle (a natural hanging curve) with strict dimensional tolerances which is essential during the vulcanization process for applying and distributing uniform heat and pressure to cross-link the polymer molecules on receiving the conductors from the Conductor Manufacturing unit. The applicant has submitted that levels of CCV tower are solely determined by the functional requirements of the vulcanization process, allowing for a seamless and continuous manufacturing process from raw conductors to the insulated products, hence the overall design and layout of a CCV tower is highly optimized for productivity, efficiency and safety.

13. The applicant has also submitted that they have engaged a third party M/s. Suraj Buildcon Pvt. Ltd. for the engineering, procurement and construction (EPC) of the CCV tower, that the EPC vendor will raise invoices on the applicant for the supply of goods and services, along with the applicable GST, that the expenses incurred towards such goods and services are capitalized by the applicant in its books of account, except the GST amount which should be available as ITC, that there are other plant and machinery that are fixed through strong foundations inside the Conductor Manufacturing area, CCV Cable area, HT/LT area for which the applicant would be availing ITC. The applicant has further submitted that given the technical and operational requirements of setting up a vertical CCV tower for manufacture of insulated electrical cables, the applicant is of the opinion that the CCV tower is an integral structural support for various machines used in the manufacturing of insulated cables, hence qualifies as ‘apparatus’ and therefore to be covered in the term “plant and machinery”, Therefore, ITC of such GST is not blocked in terms of Section 17(5)(c) and 17(5)(d) of the CGST Act, 2017.

14. The applicant has asked the following question for Advance Ruling:

Whether the applicant is eligible to avail input tax credit on inputs and input services used in the setting up of the continuous catenary vulcanization tower at the factory of the applicant for the manufacture of insulated cables, and not restricted in terms of Section 17(5)(c) and 17(5)(d) of the CGST Act, 2017?

15. Before referring to the averments raised by the applicant, we find it prudent to refer to the process undertaken at different levels in the CCV tower for manufacturing of high-voltage cross-linked polyethylene (XLPE) insulated electrical cables as submitted by the applicant. The key machines and their functions on each level of the CCV tower are as follows:

In short, the applicant has upgraded their technology to manufacture high-voltage cross-linked polyethylene (XLPE) insulated electrical cables by using CCV process. For the same, the CCV manufacturing line is required to be supported by a steel structure. Thus, the primary issue is .about the eligibility of ITC on inputs and input services used in the construction of vertical steel tower i.e. CCV tower.

16. The gist of the averments raised is that the contract for construction of CCV tower was awarded to M/s. Suraj 13uildcon, which was in the nature of the works “? contract; that the inputs and input services received for the construction of the steel structure are used for foundational & structural support of the CCV line; that the CCV line will qualify as apparatus, that the CCV tower is an essential structural support to the entire CCV machine line, hence is squarely covered within the definition of ‘plant and machinery’ in terms of explanation to section 17(5) and that even if the expenses incurred towards such goods and services are capitalized by the applicant in its books of accounts except the GST amount (which should be available as ITC as per the applicant’s view), it qualifies for plant and machinery.

17. Since the issue revolves around the interpretation of section 17, ibid, it is obligatory to refer to the said section for ease of reference:
Section 17. Apportionment of credit and blocked credits-

(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub­section (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

(iii) pipelines laid outside the factory premises.

18. We find that irrespective of the fact that whether the event of construction of the CCV tower is a works contract or otherwise, in terms of section 17(5) (c) and (d), plant and machinery stand excluded from the apportionment of credit and blocked credits. Further, although “Structural support” has not been defined in the CGST Act, it is evident from the meanings given in renowned dictionaries such as Cambridge, Oxford and Merriam Web star that ‘structural support’ refers to a physical or foundational element that forms part of a larger structure and serves the purpose of holding, bearing, or stabilizing loads which ensures that the structure or equipment it supports remains secure from external forces. Thus, the CCV tower provides structural support with the necessary height and infrastructure while maintaining the structural integrity, stability, precision and overall efficiency of the support system for manufacture of insulated cables and is thus an essential structural support to the entire CCV machine line in the manufacture of insulated cables.

19. On going through the layout of the CCV tower and the process undertaken at different levels in the CCV tower as detailed in para 15 above, we arc in agreement with the applicant’s averment that the CCV tower made of specialised steel structure is essential to support and erect the CCV lines. It is more so since the applicant has stated that the specialised steel structure in the form of CCV tower serves as a critical and essential structural support system to the entire CCV machine line for manufacture of insulated cables while maintaining the structural integrity, stability, precision and overall efficiency of the support system for the manufacture of insulated cables. Given these facts, we find that plant and machinery in terms of the second explanation, placed beneath section 17, i bid, specifically includes foundation and structural support. The exclusions from plant and machinery are also listed viz (i) land, building or any other civil structures; (ii) telecommunication towers; and (iii) pipelines laid outside the factory premises. Further, ‘other civil structures’ means civil structures other than foundation and structural support to plant and machinery.

20. Thus, the moment it is held that the ITC sought is on construction of foundation and structural support relating to plant and machinery, it moves out of the ambit of section 17(5)(c) and (d) even if it is on their own account. This being the case, we find that the applicant is eligible for availing the ITC on inputs and input services used for construction of specialised steel CCV tower to support and erect the CCV lines at the factory of the applicant for manufacture of high-voltage cross-linked polyethylene (XLPE) insulated electrical cables.

21. The applicant, has also relied upon the clarification issued by CBIC vide its CBIC Circular No. 219/13/2024 dated 26.06.2024 which reads as under:

22. Drawing the analogy from the aforementioned clarification, we find that when ITC is not restricted even in respect of ducts and manhole used in °PCs under section 17(5) of the CGST Act 2017., the ITC, on inputs and input services used for construction of steel CCV tower to support and erect the CCV lines, for manufacture of insulated electrical cables also, similarly, cannot be restricted.

23. We also find that the Hon’ble Gujarat Appellate Authority of Advance Ruling in a similar case of M/s. KEI Industries ltd. [2025(8) TMI 5511 (in Advance Ruling (Appeal) No. GUJ/GAAAR /APPEAL/2025/114 dated 31.07.2025(in Application No. Advance Ruling/SGST & CGST/ 2025/AR/02) had held that the appellant was eligible to avail ITC on the inputs and input services used for the construction of a concrete tower to support and erect the vertical continuous vulcanization (VCV) lines. The applicant is also found to have relied upon this decision to support their cause.

24. For the reasons mentioned above, we find and conclude that the applicant is eligible to avail input tax credit on inputs and input services used in the setting up of the continuous catenary vulcanization tower (CCV tower) at the factory of the applicant for the manufacture of insulated cables. Further, since the ruling is being made in the favour of the applicant, we do not find the need to discuss the averments as well as the cases relied upon by the applicant as the same would at best only be of academic interest.

25. In view of the above, we rule as under: –

RULING

1. Whether the applicant is eligible to avail input tax credit on inputs and input services used in the setting up of the continuous catenary vulcanization tower at the factory of the applicant for the manufacture of insulated cables, and not restricted in terms of Section 17(5)(c) and 17(5)(d) of the CGST Act 2017.?

A.1 Yes, the applicant is eligible to avail input tax credit on inputs and input services used in the setting up of the continuous catenary vulcanization tower at the factory of the applicant for the manufacture of insulated cables, and is not restricted in terms of Section 17(5)(c) and 17(5)(d) of the CGST Act 2017.