ITC Ineligible on Breakwater-Wall for Vessel Safety, Not Plant & Machinery

Konkan LNG Limited Vs Commissioner of State Tax (Bombay High Court) The Bombay High Court recently adjudicated on a contentious tax issue involving Konkan LNG Limited (KLPL), a subsidiary of GAIL (India) Ltd., regarding the eligibility for Input Tax Credit (ITC) on the construction of a breakwater-wall at their regassification plant in Dabhol. KLPL argued that the breakwater-wall, crucial for protecting LNG carriers during adverse weather conditions, should be considered ‘plant and machinery’ under the GST framework, thereby allowing them to claim ITC. They contended that the struc...