Page 174 - GSTL_23rd April 2020_Vol 35_Part 4

500 GST LAW TIMES [ Vol. 35
plant at Dabhol, Maharashtra and hereby engaged in the regasification of the
LNG. Its GSTIN in the State of Maharashtra is 27AAGCK0390Q1Z0.
2. That, the LNG reaches to plant through jetty where it is unloaded
from various ship/cargos. The captive jetty is situated in sea and it is about 1.8
km from the tanks farm area and is well within the plant area. The length of the
jetty is around 300 meters and handles presently around 20 LNG Cargo in a year
without the breakwater.
3. That, in order to protect the jetty from the high tide and forceful sea
waves, there is existing partly constructed break water which was constructed by
Dabhol Power Company (DPC). This breakwater was the part of the original of
the approved design itself, meaning thereby, the jetty was not workable at its
potential without the existence of breakwater.
4. That, the Breakwater was designed to prevent the high waves and
tide to touch the jetty and cargo/ ships of LNG and thereby important for the
safety for the jetty as well as the ship from the risk of damage.
5. That, although having the break water was absolute necessity, the
existing break water was not complete and requires immediate reconstruction in
order to keep the jetty and cargo safe during the LNG unloading process.
6. That due to existing incomplete Break water facility, the NSPC, the
authority for the clearance of jetty, provides only provisional clearances for the
berthing and unloading of the LNG cargo and therefore does not allow the berth-
ing of the cargo unless the height of the wave (swell) is less than 0.5 meters. Thus
the performance of the jetty is much below its potential/capacity and that too has
always suffers the risk of damage due to of high tides and waves.
7. That, due to the above mentioned operational technical restriction,
the appellant has invited the tender where the scope of work are as follows -
Basic design, detail engineering and physical model test, surveys, tempo-
rary work, development of quarries, supply of material, construction of
balance portion of breakwater and removal of temporary works as per the
assessment reports, job specification, codes and recommendation of license
holder and drawings.
[* * * * *]
8. That for the purpose of determination whether the appellant will be
able to claim the inputs on the GST paid on such construction/reconstruction of
the break water, the appellant had preferred the application under section 97 of
the GST Act and question for determination was as under -
“Whether the appellant is eligible for taking ITC in terms of section 16 read
with section 17 of the MGST Act/CGST Act (CGST/SGST/IGST) on con-
struction of the above said Breakwater, which is an important and integral
part of the existing jetty and very much required for the purpose of safety
and longevity of the jetty and it imperative for making the existing jetty as
fully workable as an all-weather jetty and hence improves the operational
efficiency of the appellant.”
9. That the advance ruling authority on 24-5-2019 has passed the order
under Section 98 and relying on Section 17(5)(d) read with explanation, held that
the appellant is not allowed to take the credit of the ITC of the amount of the GST
paid to the contractors/supplier of the goods or services. However, said order
was communicated to us through Email dated 10-7-2019.

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