Page 146 - GSTL_27th August 2020_Vol 39_Part 4

472 GST LAW TIMES [ Vol. 39
(ii) Supply of Plant and Equipment of lighting for Plant Road, Bounda-
ry Wall and Watchtower
(iii) Erection of Plant and equipment for Lighting of Plant Road, Bound-
ary & Watchtower”
5.4 It is observed that the Appellant M/s. NMDC had entered into a
contract agreement with M/s. Bajaj Electricals Ltd. for Lighting of Plant Road,
Boundary & Watchtower. It includes various Inputs and Input services like de-
sign 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 the cables. The issue in hand is whether the tax paid
on such inputs and input services used for lighting of plant road, boundary wall
and watchtower is eligible for Input Tax Credit under CGST Act, 2017. It has fur-
ther been their contention that to serve the said plant and enable NMDC for
round clock manufacturing operations, lighting is indispensable and in this re-
gard NMDC has awarded the project of Lighting of Plant Road, Boundary &
Watchtower (Package 33) to M/s. Bajaj Electricals Limited. The lighting system
works are used for illuminating the plant area, lighting arterial roads, boundary
wall and watch tower which are essential to carry the manufacturing operations
as the steel plant it is a continuous process plant which will run round the clock.
We also find that the scope of impugned work can be summarized as comprising
of three major parts viz. Design & Engineering, Supply of Plant & Equipment
and Erection of such Plant & Equipment. The Appellant has further contended
that the lighting installed at their Plant Road, Boundary Wall and Watchtower
can be dismantled without substantial damage and can be reassembled at anoth-
er place without substantially damaging it and therefore may be considered as
movable property and accordingly they are eligible for credits of tax paid on in-
puts and input services used for Lighting of Plant Road, Boundary & Watchtow-
er should be eligible. Without prejudice to above it was also M/s. NMDC’s con-
tention that if such lighting is treated as an immovable property, then credit of
the taxes paid on various inputs will be eligible if the said lighting satisfies the
definition of the “plant and machinery” and that Lighting of plant road compris-
es of equipment like street poles, fittings, aviation lamps, switch box, pipes for
laying the cables and therefore lighting of plant road, boundary & watchtower
will qualify as an apparatus or an equipment.
5.5 As regards the exclusions specified in the statute it was their stated
position that the phrase “any other civil structures” has to be read in conjunction
with land and building and therefore any civil structure in the nature of land and
building will ordinarily be a place from where the business is being carried on
and not a structure used in the process of manufacture or forming part of factory
premise for making inward and outward supply of goods/services. It was thus
their submission that the same will not be a civil structure and that it falls within
the definition of plant and machinery.
5.6 In the instant Appeal, the Appellant seeks addressal on the primary
issue as to whether the AAR was right by holding that the items in question mer-
it treatment as a civil structure/immovable property and not as “plant and ma-
chinery” and whether the order of AAR dated 24-4-2019 failed to appreciate the
scope of Section 16 of CGST Act, 2017.
5.7 Section 16(1) of CGST Act stipulates that :
“Every registered person shall, subject to such conditions and restrictions as
may be prescribed and in the manner specified in section 49, be entitled to
take credit of input tax charged on any supply of goods or services or both
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