Page 117 - GSTL_23rd April 2020_Vol 35_Part 4

2020 ] IN RE : TARUN REALTORS PVT. LTD. 443
explanation to Chapter V and Chapter VI of the CGST Act, 2017 and are accord-
ingly, not excluded from the definition of “Plant and Machinery”.
8.9 They further submitted that although the installations are fixed to
the building/earth, they qualify as “Plant” or “Machinery” under the CGST Act
and accordingly the taxes paid on procurement of goods or services for such in-
stallations should not be regarded as blocked credits in terms of Section 17(5)(d)
of the CGST Act read with Explanation to Chapter V and Chapter VI of the CGST
Act.
Personal Hearing :
9. The appellant was called for a personal hearing on 10th Jan., 2020 but
the same was postponed to 31st Jan., 2020 on their request. The appellant was
represented by Shri Badrinath N.R., Chartered Accountant who reiterated the
submissions made in the grounds of appeal. He stressed on the submission that
the term “Plant” is to be looked at independently and not in conjunction with
‘machinery’. He submitted that when the building is rented out, the tenant is
given the right to use the installations which are part of the common facilities
provided. For use of the common facilities, separate common area maintenance
charges are collected from the tenants which is separate from the rental charge.
On a specific query by the Members, the appellant submitted photographs of the
water treatment plant and sewage treatment plant installed at the Arena Mall.
Discussions and Findings :
10. We have gone through the records of the case and considered the
submissions made by the Appellant in their grounds of appeal as well as at the
time of personal hearing. It is seen from the records and the submissions made
by the appellant that they are constructing a shopping mall which they intend to
lease/rent out for housing departmental stores, retail shops, food courts, multi-
plex cinema theater complex and hypermarket. The appellant has procured vari-
ous goods/services for the installation of Chillers, Air Handling Unit (AHU),
Lift, Escalator, Travellator, Water Treatment Plant (WTP), Sewage Treatment
Plant (STP), High-Speed Diesel yard (HSD), Mechanical Car Park and In-
door/Outdoor Surveillance System (CCTV), DG sets, Transformers, Electrical
wiring and fixture, Public Health Engineering (PHE), Fire-fighting and water-
management pump system in the shopping mall under construction. The appel-
lant has paid tax on the procurement of the goods/services for the installation of
the above items.
11. The question is to decide whether input tax credit against purchases
of goods and services used for installation of the aforesaid items in the shopping
mall under construction can be claimed and utilized to pay GST on the outward
supply of services of renting of the shopping mall as retail shops, food courts,
cinema theater, etc.
12. Section 16(1) of the CGST Act, 2017 provides as follows :
“16.(1) Every registered person shall, subject to such conditions and re-
strictions as may be prescribed and in the manner specified in Section 49, be
entitled to take credit of input tax charged on any supply of goods or ser-
vices or both to him which are used or intended to be used in the course or
furtherance of his business and the said amount shall be credited to the
electronic credit ledger of such person“.
The generalized interpretation of the aforesaid Section implies that the appellant
is entitled to credit of input tax charged on any supply of goods and/or services
GST LAW TIMES  23rd April 2020  237