Case Law Details
In re Coral Manufacturing Works India Private Limited (GST AAAR Tamilnadu)
The GST AAAR Tamilnadu has recently delivered a ruling on a significant topic concerning the Input Tax Credit (ITC) in relation to structural support erected for overhead cranes within an ‘Integrated Factory’ building. The appeal case presented by Coral Manufacturing Works India Private Limited sought to clarify whether the ITC benefit was applicable in this context, challenging the existing orders of the Advance Ruling Authority, Tamil Nadu.
The appellant’s prayer to set aside the order and allow the ITC benefit hinged on interpreting the provisions of Section 17 (5) (c) & (d) of the CGST Act, 2017. The Act holds an exception to the bar on ITC benefit in the case of plant and machinery, with the appellant arguing that the Integrated Factory Building functions as such. However, according to the CGST Act, plant and machinery are defined as apparatus, equipment, and machinery fixed to earth by foundational or structural support. While the overhead crane and related structural support fit this definition, the integrated factory building itself does not. Therefore, the appellant is eligible for an ITC proportional to the structural support erected for the overhead crane alone, but not for the construction of other civil structures like the building’s side walls and roof.
FULL TEXT OF THE ORDER OF GST AAAR TAMILNADU
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are in pari materia and have the same provisions in like mailer and differ from each other only on few specific provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act. 2017 would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act, 2017.
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