Chirantan Enterprises LLP Vs Commissioner CGST And Central Excise (Madhya Pradesh High Court)
The Hon’ble High Court of Madhya Pradesh in the case of M/s Chirtantan Enterprises LLP v. Commissioner CGST and Central Excise [Writ Petition No. 29788 of 2024 dated October 15, 2024] dismissed the writ petition relying on the landmark case of Chief Commissioner of Central Goods and Services & Ors. v. M/s. Safari Retreats Private Limited & Ors. [Civil Appeal No. 2948 of 2023 dated October 03, 2024] wherein the Apex Court upheld the validity of Section 17(5)(c) and 17(5)(d) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”), rejecting the constitutional challenge. It clarified that “plant or machinery” in Section 17(5)(d) cannot be interpreted the same way as in the explanation to Section 17(5)(c) of the CGST Act. Further, construction of a mall, warehouse, or building can be classified as a “plant” depends on the registered person’s business and the building’s role in that business. Buildings constructed for services like renting or leasing may qualify as a plant, subject to a functionality test. Thus, the Court remanded cases where the High Court had read down the provision and called for factual analysis in other cases.
