Case Law Details
In re KLF Nirmal Industries Private Limited (GST AAR Tamilnadu)
1. Whether the company is eligible to take input tax credit as inputs/capital goods or input services of the items used in Design, Engineering, Supply, Execution (EPC) of 265KW Roof top Grid Solar PV Power Plant as per MNRE & IEC Standards?
it is seen that the applicant has entered into works contract for design, engineering and installation along with supply of solar power panel for an agreed consideration of Rs. 1,03,69,458/- which includes the tax of Rs.8,47,458/. They have procured the said product for use in their business and they have also stated that the entire amount exluding the GST component has been capitalised thereby deprecation on the GST element has not been claimed for which they have produced documentary evidences. Further they have produced copies of invoices for M.S.Channels and Loading charges etc., and claimed credit of GST paid on such goods/services, grouped under “Gross Block Plant & Machinery-TN (Tamil Nadu)” while in the Appendix-A annexed to the application, they have submitted invocies of M/s.KCP Solar Industries from whom they have ordered to purchase the solar power plant along with connected services of desinging,engineering etc and required their eligibility to credit on this alone. The works contract services received from M/s. KCP Solar Industry, being Plant& Machinery, the credit of Rs.8,47,458/- raised under Invoice no. 135/20-21 dt. 10.09.2020 listed as Appendix-A to the application is eligible as credit. However the GST component on other invoices grouped under “Gross Block Plant & Machinery-TN (Tamil Nadu)” is not available as credit for the reasons mentioned above. Thus the applicant is eligible for availing input tax credit as inputs/capital goods or input services of the items used in Design, Engineering, Supply, Execution (EPC) of 265KW Roof top Grid Solar PV Power Plant as per MNRE & IEC Standards procured from M.s KCP Solar Industries as they have been found to comply with the provisions of Sections 16(1) and (2), 17(5) of the CGST Act,2017 and that they are found to be using the electricity so generated captively only in the process of manufacture of edible oils, which is a taxable commodity.
2. Whether the company is eligible to take input tax credit for inputs and services for running the solar plant?
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