Case Law Details
In re M/s. Sundharams Private Ltd (GST AAR Maharashtra)
Also Read Corrigendum Order- Laying of paver blocks not amount to works contract service for construction of immovable property
Question. Whether applicant is entitled to avail Input tax credit under CGST/SGST Act in respect of taxes to be paid on its purchase of Paver Blocks laid on the land?
Applicant contended that Laying of Paver Blocks on land does not amount to construction of Immovable property u/s. 17(5) (c) of the CGST Act, 2017 and are to be construed as moveable items. With respect to eligibility of ITC applicant has stated that, the prohibition to avail input tax credit is applicable only in respect of expenditure which is capitalized in the books of account and since, expenses on Paver Blocks are not capitalized as a part of immovable property (Land) in their books of accounts, ITC is allowable to them. Applicant has finally surmised that even if it is assumed that Paver Blocks as in the subject case, acquire the character of ‘immovable Property”, they should be allowed ITC as per the decision of Orissa High Court’s decision in Safari Retreats Pvt Ltd. Vs. Chief Commr. of CGST reported in 105 Taxmann 324.
The jurisdictional officer, citing the case law of “Municipal Corporation of Greater Bombay and others Vs. Indian Oil Corporation Ltd., (1991 Supp (2) Supreme Court Cases 18” has contended that laying of the paver blocks on land amounts to construction of immovable property u/s 17(5) and therefore, ITC is not allowable to the applicant.
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