Case Law Details
In re Swan LNG Pvt. Ltd (GST AAAR Gujarat)
ITC is not available on input, input services and capital goods on purchased for the construction of the LNG jetties
The AAAR, Gujarat, in the matter of M/s. Swan LNG Pvt. Ltd [Advance Ruling (Appeal) No. GUJ/GAAAR/APPEAL/2022/06] has held that the Liquefied Natural Gas (“LNG”) jetties built are not in the nature of plant and machinery and therefore, the Input Tax Credit (“ITC”) on input, input services and capital goods for the construction of building the LNG Jetties are not admissible.
Facts:
M/s. Swan LNG Pvt. Ltd, (“the Appellant”) has entered into a concession agreement with the Gujarat Maritime Board and the Government of Gujarat for the development, construction, operation and maintenance of the LNG Port with a Floating Storage and Regasification Unit (“FSRU”) facility near Jafrabad, Gujarat, on Build, Own, Operate and Transfer basis. As a part of developing the LNG Port and FSRU facility, the Appellant is developing an Import Terminal for FSRU near the village Bhankodar, near Jafrabad, Gujarat. After the development of the Import Terminal, the Appellant intends to provide the LNG regasification service to prospective customers.
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