Page 12 - GSTL_27th August 2020_Vol 39_Part 4

x GST LAW TIMES [ Vol. 39
Immovable property project, exclusion of ITC - See under INPUT TAX
CREDIT (ITC) .................................... 459
Impact evaluation services for Government entity, exemption admissible -
See under PURE SERVICES ............................ 430
Input Tax Credit (ITC) - Exclusion of credit - Works contract - Assessee,
State-controlled mineral producer owned by Government of India and
under administrative control of Ministry of Steel awarding project of
lighting of plant road, boundary and watchtower (Package 33) to BEL -
Contract includes various Inputs and Input services like design and
engineering, supply of plant and equipment and erection of such plant
and equipment including street lighting tubular poles, fittings, aviation
lamps, switch box, pipes for laying cables - Contract consists of transfer
of property in goods, coupled with supply of services which leads to
inevitable conclusion that it was “works contract” - Project of lighting of
plant road, boundary and watchtower awarded to the contractor by
assessee not as simple or movable - It consists of entire system
comprising variety of different structures installed after lot of prior work
involving detailed designing, engineering, supply, civil work, civil
engineering, ground work, foundation work, fabrication, erection of
building steel structures & sheeting and erection of electrical items, etc. -
Magnitude of work done enormous and tailored specifically to fit
dimensions and orientation of project’s needs - Not prudent or viable to
move these items from one place to other - Project fulfills conditions of it
being an immovable property - No visible intention to dismantle said
project for lighting conclusion of Authority for Advance Rulings that the
resultant structures were civil structures with foundations and are
immovable in nature, proper - Project for lighting consisting of civil
structures as cannot be said to be used by assessee for making outward
supply of goods or services or both, being essential ingredient for being
termed as “Plant and Machinery” - Structures/towers meant for lighting
for plant road, boundary wall and watchtower can in no way be related
to outward supply of goods - No nexus between project and outward
supply - Finding of Authority for Advance Ruling that “provisions
facilitating availment of Input Tax Credit does not extend any blanket or
unconditional permission for availment of credit on all items irrespective
of its use, place of use and its role in making outward supply of goods or
services or both, as appears to have been misconstrued by the applicant -
These towers, boundary and watchtower by their very nature appears to
be nothing but independent civil structures, having no relationship
whatsoever with outward supply” affirmed - Assessee not entitled for
input tax credit on inward supplies for he said activities of design &
engineering, supply of plant and equipment and erection of plant and
equipment for lighting of plant road, boundary and watchtower -
Sections 2(19), 2(59), 2(83), 2(119), 16 and 17 of Central Goods and
Services Tax Act, 2017 - Section 3(26) of General Clauses Act, 1897 — In
Re : P.K. Mahapatra (App. A.A.R. - GST - Chh.) ....................... 459
— Paver Blocks for laying in Parking Area - Immovable property -
Applicant, supplier of output services of logistics of transport of Motor
Vehicles, which, inter alia, includes parking of said vehicles in open
warehouse, claiming ITC on paver blocks laid in parking area for
avoiding wear and tear of MV tyres - Claim is based on premise that such
laying mounts to construction of movable property inasmuch as that

GST LAW TIMES  27th August 2020  12