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- ITC on blocked credit
- Whether input tax credit is allowed on lifts, escalator, DG sets, ventilation, wooden flooring etc.
Whether input tax credit is allowed on lifts, escalator, DG sets, ventilation, wooden flooring etc.
Issue Favourable to Tax Payer ?:- no
Held - We find that the law is unambiguous as far as ITC is concerned in respect of the P&M. ITC is not available in respect of works contract services when supplied for construction of an immovable properly. Further, ITC is not available for goods, services or both received for construction of immovable property even when used in the course or furtherance of business.
The photograph reveals a structure/shed, erected on the lef.....
Issue Favourable to Tax Payer ?:- no
Held - As the construction of central air conditioning plant via a works contract service as pointed out above, makes it an immovable property, it ceases to be a plant and machinery.
In view of the foregoing, we hold that the ITC on the supply of Central Air Conditioning Plant, ceases to be a plant and machinery & hence, is blocked under Section 17(5)(c) of CGST Act, 2.....
Issue Favourable to Tax Payer ?:- yes
Held - I also find that the imported lifts were used for the construction of building and therefore the appellant has used the capital goods for providing output service and this artificial bifurcation resorted to by the authorities, is beyond the statutory provision and the basis of denying the credit is not proper because the appellant has fulfilled the conditions in terms of Rule 2(p) of CCR which defines output service and as the lift is n.....
Issue Favourable to Tax Payer ?:- no
Held - The Central Air Conditioning Plant once installed and commissioned in the building is transferred to the building owner and this involves transfer of property. We thus find no merit to treat an entire Central Air conditioning system a movable property.
We find supply of centralised air conditioning plant covered at Section 17(5)(c) CGST Act. We note that section 17(5) CGST Act is a Non obstante sub section, overriding the provisio.....
Issue Favourable to Tax Payer ?:- no
Held - We are of the considered view that in case of a building which is constructed through a works contractor, a lift, sanitary items, underground cables etc. are also an integral part of that building itself and therefore covered under the exclusion clause of the explanation given beneath Section 17(6) of the Act.
In the case of Triveni Engineering & Indu.....
Issue Favourable to Tax Payer ?:- no
Held - The lift installed in the building for the purpose of furtherance of business cannot be deemed to be a part of the building or an immovable property just because of the fact that it was fastened in the civil structure of the building by way of nuts, bolts and fasteners. Further, the lift so installed in his Hotel is not a customized lift but a pre-designed lift. These lifts require a specified area in a buil.....
- 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 ?
