In re Assistant Commissioner, CGST and Central Excise, Division-VII, Bharuch, Vadodara-II Commissioner Vs. Elixir Industries Private Limited (GST AAAR Gujrat)
ITC Admissible on Capital Goods Installed Outside Factory Premises
The Gujarat AAAR In the matter of Elixir Industries Private Limited [Advance Ruling Appeal No. GUJ/GAAAR/APPEAL/2025/16, order dated September 22, 2025] held that Input Tax Credit (ITC) is admissible on capital goods such as wires, cables, and electrical equipment used for power transmission from the grid to the factory, even if installed outside factory premises and subsequently transferred to Gujarat Energy Transmission Corporation Ltd. (GETCO) for maintenance, provided the conditions under Section 16 of the CGST Act, 2017 are met.
Facts:
The Assistant Commissioner, CGST & Central Excise, Division VII Bharuch (“the Appellant”), representing the Revenue, filed an appeal against the favorable Advance Ruling given to the Respondent.
Elixir Industries Private Limited (“the Respondent”) is a 100% Export Oriented Unit manufacturing of non-woven spun lace products, requiring high-tension power supply. The Respondent installed a 66 KV feeder bay and a 750-meter 66 KV underground cable line from GETCO’s substation to its factory premises under GETCO’s policy.
The Respondent capitalized the value of these capital goods and paid the corresponding GST, seeking ITC on the same. The ownership of installed assets was transferred to GETCO by agreement for maintenance, with no consideration.
