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- Eligibility / Reversal of ITC
- Whether input tax credit is allowed if goods are used outside the assessee's premises ?
Whether input tax credit is allowed if goods are used outside the assessee's premises ?
Issue Favourable to Tax Payer ?:- yes
Held - The primary ground raised by Revenue is that the installation of 66KV feeder bay is outside the factory & the ownership lies with GETCO. Therefore, it cannot be categorized as plant and machinery and is, therefore, blocked under section 17(5) of the CGST Act, 2017. Further, since the goods will be transferred to GETCO, ITC is liable to be reversed or paid back in terms of section 18(6).
Issue Favourable to Tax Payer ?:- yes
Held - The applicant's averment is that they are not hit by 17 (5) (c), ibid. The applicant further states that they have capitalized the basic value as capital goods and the tax portion is being availed as ITC. Therefore, it is not hit even by the explanation. As far as 17 (5) (d) is concerned, the applicant states that they are covered by the explanation which defines plant and machinery and that they are also no.....
Issue Favourable to Tax Payer ?:- yes
Held - So far as the issue on merits is concerned, in a nutshell the entire credit availed by the appellants on MS Angles, MS Beams, MS channels and poles for wire for transmission of electricity from MSEB feeder to the factory manufacturing sugar and vice versa has been denied on the ground that it is outside factory premises and not eligible capital goods. It is not disputed that the poles etc. were used for supplying electricity in the fact.....
Issue Favourable to Tax Payer ?:- yes
Held: We find that there is no denial for the rails/sleepers to partly within the manufacturing unit/factory of appellant. Irrespective it extends outward but admittedly is used for the transport of raw material inside the factory for manufacturing final product. Thus is the part and parcel for the manufacturing unit composed of capital goods which cannot function without these rails.
Issue Favourable to Tax Payer ?:- no
Held - Now, we will discuss the issue of admissibility of ITC, raised by the Appellant in question 2(b) of the advance ruling application, in respect of the various input services like Maintenance and upkeep activities relating to gardens, parks, playground, factory school for children of employees, hall for recreational activities, residential quarter buildings of employees, roads, footpaths, street lightings and other parts of estate area th.....
Issue Favourable to Tax Payer ?:- no
Held - Question No. 2:-
1) Whether Input Tax Credit on expenditure on the goods and services consumed by our organisation in following activities shall be available:-
b) Maintenance and upkeep activities relating to gardens, parks, playground, factory school for children of employees, hall for recreational activities, residential quarter buildings of employees, roads, footpaths, street .....
- Whether reimbursement of expenses is leviable to GST?
- Whether input tax credit is admissible if invoice/debit note does not appear in Form GSTR-2A/2B or tax is not paid by supplier ?
- Whether marketing and sales promotion services to customers located outside India is intermediary or export of services ?
- Whether order / show cause notice is valid if passed without pre-show cause notice consultation or GST DRC-01 (summary SCN) or GST DRC-01A (tax intimation notice) ?
- Whether recovery proceedings can be initiated if assessee is willing to file an appeal ?
- Whether input tax credit can be transferred to the transferee entity in case of an inter-state business transfer ?
- Whether interest is payable for the period during which the reply to the deficiency memo remains pending ?
- Whether combined show cause notice can be issued covering multiple financial years ?
- Whether tax can be recovered by Department without prior intimation in Form DRC-01D ?
- Whether a penalty equal to 200% of the tax amount can be demanded in case of detention or seizure of goods ?
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