Page 179 - GSTL_3rd September 2020_Vol 40_Part 1

2020 ] IN RE : P.K. MAHAPATRA 113
(Tri. - Mumbai), applying the functional utility test, the
Mumbai Bench of CESTAT held that towers would qualify as
inputs for the passive infrastructure provider.
o In J.K. Cotton Spinning and Weaving Mills Co. Ltd. v. Sales Tax
Officer, Kanpur, 1997 (91) E.L.T. 34 (S.C.), the Supreme Court
held if an activity is so integrally connected to the process of
manufacture, goods intended for use in the process will qual-
ify as credit.
4. Personal hearing :-
In accordance with the established principles of natural justice, personal
hearing in the matter was extended to the authorized representative of the appel-
lant and accordingly, Mr. Sanjay Padhy (Finance Manager) appeared for hearing
on 11-7-2019 and sought adjournment. Acceding to their request, another hearing
in the case was also extended to the Appellant on 5-8-2019, wherein Mr. S.
Ananatnarayan and Mr. Krishna Tej from M/s. Price Waterhouse Coopers, Hy-
derabad and authorized representative, Mr. Sanjay Padhy (Finance Manager)
M/s. NMDC, appeared before us for hearing on 5-8-2019. They furnished a writ-
ten submission dated 3-8-2019 along with a paper book and reiterated the same,
which has been taken on record.
5. Legal position, analysis and discussion :-
5.1 At the very outset, we would like to make it clear that the provi-
sions for implementing the CGST Act and Chhattisgarh GST Act, 2017 (hereinaf-
ter referred to as “the CGST Act and CGGST Act”) are similar and thus, unless a
mention is specifically made to such dissimilar provisions, a reference to the
CGST Act would also mean a reference to the same provisions under the CGGST
Act, 2017. Now we sequentially proceed to discuss the issues involved in the in-
stant appeal filed by the Appellant along with the provisions applicable in the
present case. The present appeal has been filed under Section 100(1) of the Cen-
tral Goods and Services Tax Act, 2017 and the CGGST Act, 2017 by the Appellant
M/s. NMDC Ltd, having their registered office at KhanijBhavan, 10-3-311/A,
Castle Hills, Masab Tank, Hyderabad, Telengana and works/administrative of-
fice at ADMN Building Hilltop Road, Near CSD, 1st Floor, Bacheli Complex,
Dantewada (South Bastar) Chhattisgarh and GSTIN 22AAACN7325A3Z3,
against the Advance Ruling Order No. STC/AAR/03/2019, dated 24th April,
2019.
5.2 The Appellant NMDC Limited is a State-controlled mineral pro-
ducer of the Government of India. It is owned by the Government of India and is
under administrative control of the Ministry of Steel. It is India’s largest iron ore
producer and exporter producing about 30 million tons of iron ore annually from
3 fully mechanized mines in Chhattisgarh. NMDC, as part of its diversification,
value addition and forward integration programme is setting up a 3 MTPA ca-
pacity greenfield Integrated Steel Plant based on HiSmelt technology in Nagar-
nar, located 16 km from Jagdalpur in the State of Chhattisgarh with an estimated
outlay of Rs. 20,000 Crore. To serve the said plant in receiving the raw materials
and dispatching the finished products, a railway siding is proposed for the inte-
grated steel plant, which is located on Kothavalasa - Kirandul (K.K) single line
electrified section of Waltair Division of E.Co. Railway. The proposed site is situ-
ated approximately 2 km away from K.K. line between Ambagaon and Amagura
Railway stations. For movement of raw materials and finished products by rail,
M/s. NMDC proposed to have one rail connectivity from the proposed new
GST LAW TIMES  3rd September 2020  195