Page 134 - GSTL_3rd September 2020_Vol 40_Part 1

68 GST LAW TIMES [ Vol. 40
tertainment and to carry on business as hotel manag-
er and operators, refreshment contractors.
(ii) To carry on the business as professional caterers,
bakers, confectioners, cooks, restaurant keepers, re-
freshment rooms proprietors, milk and snack bar
proprietors, pastry shop ownwes, cafe and tavern
proprietors, boarding & lodging house proprietors,
ice cream merchants, sweetmeat merchants.
(2) Company is constructing Hotel
Company is constructing a 100 room hotel in the name of Royal Or-
bit at Jabalpur. The hotel will be a multi storied Hotel with various
amenities and facilities including Restaurant, swimming pool, spa,
Marriage Lawn etc.
(3) Meaning of words Plant and Machinery
(a) The word plant and machinery is defined in explanation to
Section 17 as “the expression “plant and machinery” means
apparatus, Equipment, and machinery fixed to earth by
foundation or structural support that are used for making
outward supply of goods or services or both and includes
such foundation and structural supports but excludes.
(i) land, building or any other civil structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory premises
(b) As per Oxford References “The equipment required to operate a
business. Capital allowances are available for plant and ma-
chinery although neither is defined in the tax legislation. This
defines plant and machinery as ‘whatever apparatus is used
by a businessman for carrying on his business - not his stock
in trade which he buys or makes for resale : but all goods and
chattels, fixed or movable, live or dead, which he keeps for
permanent employment in the business’. Subsequent cases
have been largely concerned with the distinction between
plant actively used in a business, and so qualifying for capital
allowances, and expenditure on items that relate to the set-
ting up of the business, which do not so qualify”.
(c) Definition under legal dictionaries :
(i) As per Law Lexicon, “Plant” means the fixtures, ma-
chinery, tools, apparatus, appliances etc., necessary
to carry on any trade or mechanical business, or any
mechanical operation or process.
(ii) As per Law Lexicon, “Machinery” means something
more than a collection of ordinary tools. It means
more than a solid structure built upon the ground,
whose parts either do not move at all or if they do
move, do not move the one with or upon the other in
interdependent action with the object of producing
specific and definite result.

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