Classification of service— In the instant case, the issue is related to admissibility of input tax credit in respect of construction of LNG jetties with reference to clause (c) and (d) of Sub-section (5) of Section 17; as well as the definition of the expression “plant and machinery”, as per the ‘Explanation’ of Section 17 of the CGST Act, 2017.

The appellant seeks a ruling as to whether LNG Jetties being built by them were in nature of ‘plant and machinery’ being foundation for equipment, apparatus, machinery for re-gasification to be installed thereon.

The appellant has sought that the entire LNG Jetties that is being constructed to be treated as foundation for plant machineries that will be installed on it and to allow the input tax credit on inputs, input services and capital goods to be used in the construction of said LNG Jetties.

This authority find that LNG Jetties being built by the appellant are not in the nature of ‘plant and machinery’ being foundation for equipment, apparatus, machinery for re-gasification to be installed thereon. Therefore input tax credit on inputs, input services and capital goods for the purpose of building these LNG Jetties are not admissible.

Held that— This authority reject the appeal filed and confirm the Advance Ruling by holding that LNG Jetties being built by the appellant are not covered within the expression ‘plant and machinery’ as foundation to equipment, apparatus, machinery to be installed on it in terms of Section 17 of the CGST Act, 2017 and the appellant cannot avail input tax credit of GST paid on inputs, input services and capital goods procured for the purpose of building the LNG Jetties in terms of Section 16 of the CGST Act, 2017.