Page 180 - GSTL_23rd April 2020_Vol 35_Part 4

506 GST LAW TIMES [ Vol. 35
Jun.-19 152093527 31136 13672850 13672850
Jul.-19 20135329 5850 1809255 1809255 2793401 501336 738 738
Aug.-19 14859449 678 1337012 1337012 1249280 224870
TOTAL 3479185071 94832 315779073 315779073 42799673 7596334 53802 53802

Personal Hearing
21. A personal Hearing in the matter was conducted on 4-11-2019,
wherein Shri Ajay Kumar (Advocate), Prakash Sinha (C.A.), Alok Jain, repre-
sentatives of the Appellant, reiterated their written submissions. Shri Amol S.
Shedbale, State Tax Officer (Rat-Vat-C-006), Ratnagiri, appearing as jurisdictional
officer, reiterated the submissions, which had been made earlier before the Ad-
vance Ruling Authority.
Discussions and Findings
22. We have gone through the facts of the case, documents on record
and submissions made by both appellant as well as the jurisdictional officer. The
appellant having a LNG regasification plant at Dabhol, Maharashtra are engaged
in the regasification of the LNG therein. The LNG which is raw material reaches
plant through the jetty where it is unloaded from various ships/cargos adjacent
to the jetty breakwater wall which is in incomplete stage of construction. The
captive jetty is situated in sea and the length is around 300 meters and is about
1.8 km from the tanks farm area. In order to protect the jetty from the high tide
and the forceful sea there is a partly constructed breakwater wall which was
originally constructed by Dabhol Power Company. This breakwater was the part
of the original approved design itself. The break water was designed to prevent
the jetty from erosion of high waves and tide to touch the jetty and ships. As the
existing breakwater was not complete contract was given for completion of the
breakwater facility. In order for the completion of breakwater a tender was given
where scope of the work is as follows :-
.. “Basic design, detail engineering and physical model test, surveys,
temporary work, development of quarries, supply of material, construc-
tion of balance portion of breakwater and removal of temporary works
as per the assessment reports, job specification, codes and recommenda-
tion of license holder and drawings.”
23. The issue of the appellant is whether he will be able to claim the
ITC on such construction/reconstruction of the breakwater. The AAR held that
as per Section 17(5)(d) of the CGST Act, the appellant is not allowed to take the
credit of ITC of the amount paid to the contractors on the basis of the following
reasons :-
(a) Construction of Breakwater is only facilitating receipt of raw mate-
rial i.e. LNG and is not going to be used for rendering outward
supply.
(b) The Breakwater, being an immovable structure, cannot be consid-
ered as plant and machinery.
(c) KLPL is already functioning without the complete breakwater and
hence could not able to establish that it is impossible for them to
function without Breakwater.
The appellant has raised the following grounds to support their contention that
they are eligible for ITC on the said transaction.
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