Case Law Details
In re Atriwal Amusement Park (GST AAR Madhya Pradesh)
Regarding the eligibility of ITC in case of Input Tax paid on Purchase of Water Slides, we have to state that Water Slides shall fall within the meaning of the term apparatus, equipment and machinery and therefore, shall be eligible for claim of ITC.
Regarding the Steel and Civil Structure on which the Water Slides are installed, we have to state that foundation and support structures which are used to fasten plant and / or machinery to the Earth is classifiable as ‘Plant and / or Machinery’. In the instant case, slides are fastened to the Steel and Civil Structure are affixed to the Earth through these Steel and Civil Structures. Therefore, these Steel and Civil Structures shall form part of the Plant and Machinery. Accordingly, the credit of fax paid on Input goods and services used in construction of this support structure shall be available.
It has been stated that for Wave Pool, Machines have been installed. The foundation for these machines are eligible to be part of the Machines and the ITC shall be treated in the manner similar to that of the Machines. However, the Machine Room, which is a civil structure, erected for protecting machine is neither foundation nor civil structure for machine therefore. IT relatable to the construction of the room for Housing the machine shall not be eligible for ITC.
Regarding the Input Tax on Goods and services used for area development and preparation of land on which water slides are placed, we have to state that area development and expenditure on preparation of land like site formation services are part of the cost of the land and thus are interminably bound with land, these expenses are liable to be capitalized under the head Land. Therefore, on account of the specific exclusion of Land from the meaning of ‘plant and machinery’. ITC related to Land Development, subject to its capitalization as per accounting principles shall not be available.
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