Page 155 - GSTL_3rd September 2020_Vol 40_Part 1

2020 ] IN RE : ATRIWAL AMUSEMENT PARK 89
(8) 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 received 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’.
(9) 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 accepted and un-
derstood that plant and machinery many a times requires support
structure and/or foundation for installation and cannot work oth-
erwise. Thus, civil structures and foundation as supporting struc-
ture for fastening of plant and machinery to earth has been included
as part of plant and machinery.
7. Ruling
7.1 Regarding the eligibility of ITC in case of Input Tax paid on Pur-
chase of Water Slides, we have to state that Water Slides shall fall within the
meaning of the term apparatus, equipment and machinery and therefore, shall be
eligible for claim of ITC.
7.2 Regarding the Steel and Civil Structure on which the Water Slides
are installed, we have to state that foundation and support structures which are
used to fasten plant and/or machinery to the Earth is classifiable as ‘Plant
and/or Machinery’. In the instant case, slides are fastened to the Steel and Civil
Structure are affixed to the Earth through these Steel and Civil Structures. There-
fore, these Steel and Civil Structures shall form part of the Plant and Machinery.
Accordingly, the credit of tax paid on Input goods and services used in construc-
tion of this support structure shall be available.
7.3 It has been stated that for Wave Pool, Machines have been installed.
The foundation for these machines are eligible to be part of the Machines and the
ITC shall be treated in a manner similar to that of the Machines. However, the
Machine Room, which is a civil structure, erected for protecting machine is nei-
ther foundation nor civil structure for machine therefore. IT relatable to the con-
struction of the room for Housing the machine shall not be eligible for ITC.
7.4 Regarding the Input Tax on Goods and services used for area de-
velopment and preparation of land on which water slides are placed, we have to
state that area development and expenditure on preparation of land like site
formation services are part of the cost of the land and thus are interminably
bound with land. These expenses are liable to be capitalized under the head
Land. Therefore, on account of the specific exclusion of Land from the meaning
of ‘plant and machinery’, ITC related to Land Development, subject to its capital-
ization as per accounting principles shall not be available.
7.5 Regarding eligibility of Input fax Credit on Goods and Services

GST LAW TIMES  3rd September 2020  171