Page 91 - GSTL_27th August 2020_Vol 39_Part 4

2020 ] IN RE : SUNDHARAMS PVT. LTD. 417
blocks are having interlocking and the gaps are filled with sand. Paver blocks are
easily detachable and removable and therefore the same being movable goods
could be used at any other land or site. It does not become the part and parcel of
immovable property. If the goods are movable from one place to another in the
same position or liable to dismantled or re-erected at a later place, it will be mov-
able property which is the exact case of the present applicant.
2.9 Even assuming without admitting that permanently fitted Paver
Blocks acquire the character of “immovable property”, the claim of Appellant for
input tax credit has to be allowed based on the decision of Orissa High Court’s
decision in Safari Retreats Pvt. Ltd. v. Chief Commissioner of CGST reported in 105
Taxmann 324 = 2019 (25) G.S.T.L. 341 (Ori.).
3. Contention - As per the jurisdictional officer :
The submissions made by the jurisdictional officer are as under :-
3.1 The submissions of the applicant that laying of paver blocks on the
land does not amount to construction is not acceptable on the following
grounds :-
3.1.1 The purpose of laying of paver blocks as per applicant is to ensure
efficient parking of automobiles during contract period. If the cars placed on the
ordinary ground, it will be subject to the quicker wear and tear due to accumula-
tion of water, dust etc. in the wheels. Hence only laying of paver blocks in loose
form on the land is not sufficient. To serve the applicant’s purpose, compact, firm
structure and close fixing of blocks is required. However, applicant is silent on
whether cementing material or interlocking blocks used or not. But it appears
from photographs attached by the applicant that, paver blocks are fastened to
land using interlocking blocks and firm support of outer wall. These blocks are
not kept loosely on the ground. Hence, mere cementing material not used
doesn’t mean paver blocks are not fasted to earth. Rather with support of outer
wall and interlock system blocks are fastened to earth. Further, laying of such
block is time consuming, skill full job requires to be carried out with due dili-
gence and same way activity of dismantling also. Therefore mere capability of
removal and reuse elsewhere, doesn’t mean blocks are not permanently embed-
ded to earth. One cannot shift paver blocks as when required like movable
goods. It requires certain period of permanency and also without fixing paver
block using either cementing material or interlocking system, you cannot enjoy
benefits of laying paver blocks. The flexibility to reuse does not mean that blocks
will be removed and re-erected frequently. They are meant to be permanently
fixed to earth however when the need arise, client may remove them and re-
erect. So primarily nobody will lay paver blocks with intention to remove it. It
appears that to give permanence, dealer has entered into contract with OEM and
land owner also.
3.2 In the case of “Municipal Corporation of Greater Bombay and Others v.
Indian Oil Corporation Ltd., 1991 Supp (2) Supreme Court Cases 18”, it was held
that the petroleum storage tanks are structures or things attached to the land and
were exigible to the property tax. In paragraph 32 it was observed as under :
32 ”The tanks, though, are resting on earth on their own weight without
being fixed with nuts and bolts, they have permanently been erected with-
out being shifted from place to place. Permanency is the test. The chattel
whether is movable to another place of use in the same position or liable to
be dismantled and re-erected at the later place? If the answer is yes to the
former it must be a movable property and thereby it must be held that it is
GST LAW TIMES  27th August 2020  91