Page 112 - GSTL_23rd April 2020_Vol 35_Part 4

438 GST LAW TIMES [ Vol. 35
2020 (35) G.S.T.L. 438 (App. A.A.R. - GST - Kar.)

BEFORE THE APPELLATE AUTHORITY FOR ADVANCE RULING
UNDER GST, KARNATAKA
S/Shri D.P. Nagendra Kumar and M.S. Srikar, Members
IN RE : TARUN REALTORS PVT. LTD.

1
Order No. KAR/AAAR-14/2019-20, dated 6-2-2020
Input Tax Credit - Plant or machinery - Items such as Chiller, Air Han-
dling Unit, Indoor/Outdoor Surveillance System (CCTV), electrical wiring and
fixtures, Public Health Engineering (PHE), Fire-fighting and water manage-
ment pump system do not qualify as plant or machinery but procured for the
purpose of construction of immovable property - Appellant not eligible for
input tax credit of the tax paid on the procurement and installation of such
items - Sections 16 and 17(5) of Central Goods and Services Tax Act, 2017. [para
19]
Input Tax Credit - Plant or machinery - Lifts, escalator and travellators
although fixed to earth with structural supports, they qualify as plant and ma-
chinery - However, supply of the lifts and its installation at the project site of
appellant done by vendor M/s. OTIS - In such a case, M/s. OTIS will not be hit
by the restriction imposed under Section 17(5)(d) of Central Goods and Ser-
vices Tax Act, 2017 since they are engaged in the construction of lift, escalator,
travellator which qualifies as plant and machinery - However, appellant will
not be eligible for the credit of the tax paid on such procurements since the
appellant is not doing the installation of the lifts, escalators and travellators.
[para 20]
Input Tax Credit - Car parking system - Complete supply and installa-
tion of car parking system done by the vendor - Car parking system being
fixed to the earth with structural support qualifies as “Plant and machinery” -
However, appellant hit by the restriction imposed in Section 17(5)(d) of Cen-
tral Goods and Services Tax Act, 2017 and not eligible for the credit of the tax
paid on such procurements inasmuch as the appellant is not doing the con-
struction and installation of the car parking system. [para 21]
Input Tax Credit - HSD yard - Complete setting up of HSD yard done
by vendor and not by appellant - Appellant not eligible for the credit of input
tax paid on such supply as the construction of the HSD yard has not been done
by him - Section 17(5)(d) of Central Goods and Services Tax Act, 2017. [para 22]
Input Tax Credit - Water treatment Plant and Sewage Treatment Plant
form part of the civil structure of the immovable property and civil structures
are specifically excluded from the definition of “Plant and machinery” - Also
DG Set and Transformer procured as independent items and their installation
becomes part of the civil structure of the immovable property - Consequently,
appellant not eligible of the credit of taxes paid on the procurement of the Wa-
ter Treatment Plant, Sewage Treatment Plant, DG Set and Transformer. [para
23]
Appeal dismissed

________________________________________________________________________
1 On appeal from 2019 (30) G.S.T.L. 245 (A.A.R. - GST).
GST LAW TIMES  23rd April 2020  232