Page 47 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] GST PAID ON MAINTENANCE CHARGES FOR REPLACEMENT OF LIFT J105
Act, 2017 provides for eligibility of input tax credit charged on any supply of
goods or services, which are used or intended to be used in the course or further-
ance of his business. Section 16(2) provides conditions for taking ITC and regis-
tered person is entitled to take ITC, once he satisfies four conditions as specified.
Section 17(5) of the CGST Act, 2017 provides for apportionment of credit and
blocked credits in respect of an immovable property (other than plant and ma-
chinery). The above order is subject to appeal to the higher appellate authorities
for proper judicial decision if the applicant desires to avail of the benefit of ITC
under GST regime.
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[Continued from page J101]

(9) Further, the AAAR noted that the detachable sliding and stackable
glass partitions are accounted in the appellant’s books of account as
fixed assets under the head “furniture and fixtures”. They are not
capitalised as immovable property but rather as movable assets. The
AAR had observed that declaring the fixtures under the head “Fur-
niture and Fixtures” does not make the items movable and they
continue to be immovable property. However, AAAR held that the
glass partitions are movable property by applying the tests of extent
and object of annexation. Therefore, the appellate authority did not
agree with the lower authority’s finding on this aspect.
(10) The lower authority had also observed that since there is a certain
degree of permanence in the office space provided, it is to be con-
sidered as immovable property. Over-ruling this notion the AAAR
observed that the intent of fixing the glass partitions is only to pro-
vide the clients a certain sense of privacy and for the purpose of
demarcation of work space area. There is no permanency in affixing
such partitions as the same can be dismantled and re-fixed to signi-
fy a change in the dimensions of the work space. The fixing of the
partitions to the ground using nuts and bolts only serves to give a
false sense of permanency while in reality it is not so. The detacha-
ble sliding and stackable glass partitions are movable property and
addition/fixing of glass partitions does not amount to construction
of immovable property. Therefore, the procurement of detachable
sliding and stackable glass partitions will be eligible for input tax
credit and will not be hit by the provisions of Section 17(5)(d) of the
CGST Act.
Order
“On such observation the Appellate Authority for Advance Ruling held
that input tax credit can be availed by the appellant on the detachable sliding
and stackable glass partitions which is movable in nature.”
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GST LAW TIMES  23rd July 2020  47