The land filling pit comes within the ambit of the exclusion from the definition of ‘plant and machinery’. Hence it is not eligible for input tax credit.
Input tax credit- section 17(5) of CGST Act- In the instant case, the appellant is engaged in the business of solid waste management. They provide services for treatment, storage and disposal of hazardous waste.
The Appellant approached the lower Authority for a ruling on whether the ‘land filling pit’ which is capitalized in their books of account as a capital asset and used for providing their output service of treatment, storage and disposal of hazardous waste, is entitled for input tax credit or is blocked by virtue of Section 17(5) of the CGST Act.
The Appellant’s main grievance in this appeal is that the lower Authority has failed to follow the directions of the Hon’ble High Court in passing fresh orders but has merely reproduced their earlier order. The Appellant has demonstrated before us how several paras of the impugned order are identical to the earlier order.
Held that- in the second explanation given in 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 understood that plant and machinery many a times requires support structure and/or foundation for installation and cannot work otherwise. Thus, civil structures such as foundation and supporting structure for fastening of plant and machinery to earth has been included as part of plant and machinery. However, any other civil structure has clearly been excluded from the definition of ‘plant and machinery’. The land filling pit comes within the ambit of the exclusion and hence is not eligible for input tax credit.
The land filling pit comes within the ambit of the exclusion from the definition of ‘plant and machinery’. Hence it is not eligible for input tax credit.
Input tax credit- section 17(5) of CGST Act- In the instant case, the appellant is engaged in the business of solid waste management. They provide services for treatment, storage and disposal of hazardous waste.
The Appellant approached the lower Authority for a ruling on whether the ‘land filling pit’ which is capitalized in their books of account as a capital asset and used for providing their output service of treatment, storage and disposal of hazardous waste, is entitled for input tax credit or is blocked by virtue of Section 17(5) of the CGST Act.
The Appellant’s main grievance in this appeal is that the lower Authority has failed to follow the directions of the Hon’ble High Court in passing fresh orders but has merely reproduced their earlier order. The Appellant has demonstrated before us how several paras of the impugned order are identical to the earlier order.
Held that- in the second explanation given in 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 understood that plant and machinery many a times requires support structure and/or foundation for installation and cannot work otherwise. Thus, civil structures such as foundation and supporting structure for fastening of plant and machinery to earth has been included as part of plant and machinery. However, any other civil structure has clearly been excluded from the definition of ‘plant and machinery’. The land filling pit comes within the ambit of the exclusion and hence is not eligible for input tax credit.