Page 143 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] IN RE : SATYESH BRINECHEM PRIVATE LIMITED 101
“In the present case the expressions ‘bleaching, mercerising, dyeing,
printing, water-proofing, rubberising, shrink-proofing, organdie pro-
cessing, which precede the expression ‘or any other process’ contemplate
processes which impart a change of a lasting character to the fabric by ei-
ther the addition of some chemical into the fabric or otherwise. ‘Any other
process’ in the section must, share one or the other of these incidents. The
expression “any other process” is used in the context of what constitutes
manufacture in its extended meaning and the expression “unprocessed” in
the exempting notification draws its meaning from that context.”
2.19 The applicant respectfully submits that the phrase “any other civil
structures” is to be restricted to immovable property in the nature of land and
building i.e. property which is as such only a place where the business is carried
on or where manufacturing activity is undertaken. Any structure which is used
as an apparatus in the manufacturing activity will not be “any other civil struc-
ture” and it will be a “plant and machinery” for which input tax credit is admis-
sible.
Allowance of input tax credit in tune with the basic scheme of the GST Acts
which is to avoid cascading effect of taxes :
2.20 The applicant points out that one of the fundamental features of
the GST Acts is to avoid cascading effect of taxes by maintaining credit chain.
Thus the scheme of the GST Acts provides for admissibility of input tax credit in
respect of all goods and services which are used in the course or furtherance of
business. The admissibility of input tax credit in respect of plant and machinery
is also in line with such scheme since plant and machinery are essential for any
manufacturing process and without such apparatus the process would be impos-
sible or commercially inexpedient. In the present case it is impossible to manu-
facture salt and bromine chemicals without construction of
“bunds”/“crystallizers” and hence admissibility of input tax credit in respect of
goods and services used to construct such “bunds”/“crystallizers” would be in
consonance with the basic scheme of the GST Acts which is to avoid cascading
effect of taxes.
Disclaimer :
2.21 The applicant says that above question posed for advance ruling is
neither pending nor decided in any proceedings in the case of the applicant un-
der any of the provisions of the GST Acts.
Discussion and findings :
3. We have considered the submissions made by the applicant in their
application, and at the time of personal hearing. Jurisdictional Authority has not
furnished any comments in the matter.
4. The applicant has submitted that process of manufacturing salt and
bromine chemicals, as under :
• Salt and Brine are produced from sea water which requires solar
evaporation. For the purpose of manufacturing salt the applicant
has to construct “Bunds” which are also known as “crystallizers”
wherein Salt gets deposited. Due to atmospheric heat and solar
evaporation raw salt crystalize from sea water in the crystallizers
within 40 to 45 days. Later on the raw salt thus deposited is harvest-
ed either manually or by machines.

GST LAW TIMES  7th May 2020  143