Page 139 - GSTL_3rd September 2020_Vol 40_Part 1

2020 ] IN RE : JABALPUR HOTELS PVT. LTD. 73
fixed/fastened to the earth by a foundation or civil structure then such founda-
tion or civil structure shall be included in plant and machinery.
To set to rest the disputes regarding the definition of the Plant, in light of
the fact that input tax credit of works contract services, goods and services re-
ceived as input for construction of immovable property on own account has been
specifically put under the Blocked Credit list with the rider that it shall not apply
to plant and machinery, it was incumbent that there should be clarity regarding
classification of buildings and civil structures that were hitherto been classified
as ‘Plant’.
Accordingly, in the explanation relating to Plant and Machinery, beneath
sub-section (6) of Section 17, while providing the meaning of the term plant and
machinery, it has been clearly stated that Buildings and Civil Structures shall not
be covered under the term Plant. However, while so clarifying, it has been ac-
cepted and understood that plant and machinery many a times requires support
structure and/or foundation for installation and cannot work otherwise. Thus,
civil structures and foundation as supporting structure for fastening of plant and
machinery to earth has been included as part of plant and machinery.
In the instant case, the lift has become part of the building and thus falls
under the exclusion from plant and machinery and accordingly, we do not find
any reason to interfere with the clear provisions of statute.
7.9 The judicial citations relied upon by the applicant have been duly
perused and considered by us. However, we find that all these cases pertain to
pre-GST era and since Section 17(5) of the CGST Act, 2017 has put to rest all such
issues in unambiguous terms, the legal citations adduced by applicant do not
come to his rescue. On the contrary, we find that the identical issue has been de-
cided by the Learned Authority for Advance Ruling, Karnataka in the matter of
M/s. Tarun Realtors Pvt. Ltd., Bangaluru vide Order dated 30-9-2019 [2019 (30)
G.S.T.L. 245 (A.A.R. - GST)]. Even though an Advance Ruling does not have any
precedential value, there is a lot persuasive value of the ratio decidendi in the mat-
ter of this AAR. The Learned AAR, Karnataka has ruled that Lift, along with,
several other such items, shall not be entitled for input tax credit when used in
construction of immovable property since they take the character of Building
itself. We thus hold that the applicant in the instant case shall not be entitled to
avail input tax credit of tax paid on procuring the lift to be installed in the hotel
building which in turn is intended to be used for providing taxable service, in
terms of Section 17(5)(d) of the CGST Act, 2017.
8. Ruling
8.1 In respect of solitary Question, we hold that the input tax credit of
tax paid on Lifts procured and installed in hotel building shall not be available to
the applicant as the same is blocked in terms of Section 17(5)(d) of the CGST Act,
2017, become an integral part of the building.
8.2 The ruling is valid subject to the provisions under Section 103(2)
until and unless declared void under Section 104(1) of the GST Act.

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GST LAW TIMES  3rd September 2020  155