Gujarat AAAR Allows ITC on VCV Tower Construction

In re KEI Industries Ltd (GST AAAR Gujarat)

Gujarat Appellate Authority for Advance Ruling (AAAR) has overturned a decision of the Gujarat Advance Ruling Authority (GAAR) and permitted KEI Industries Ltd. to avail input tax credit (ITC) on inputs and services used for constructing a vertical continuous vulcanization (VCV) tower at its factory for manufacturing extra high voltage (EHV) cables.

The dispute centred on whether the concrete VCV tower, which houses heavy machinery and facilitates the cable manufactur

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