Order Date – 05 January 2024

Facts –

• The Applicant, Unique Welding Products P Ltd.. has entered into an interconnection agreement with power distribution licensee (Madhya Gujarat Vij Company Ltd) for captive use of power generated by Roof Top Solar System and have recently installed a rooftop solar system.
• Relying on sections 2(63), 2(59), 16 and 17 of the CGST Act, 2017, the applicant submits that they are eligible for ITC on the inputs, input services & capital goods used for erection, commissioning and installation of roof top solar power plant.

Issue –

• Whether the applicant is eligible to take ITC as 'inputs/capital goods' or 'input services' on the purchased rooftop solar system with installation & commissioning?

Order – 

• The AAR observed that the roof solar plant, affixed on the root of the building is not embedded to earth. Accordingly it is not an immovable property but a plant and machinery, which is utilized to generate electricity which is further solely and captively used in the manufacture of welding wires.
• The Roof Solar Plant as is evident is not permanently fastened to the building. Thus, it qualifies as a plant and machinery and is not an immovable property, hence, it is not covered under blocked credit as mentioned in 17(5)(d) of the CGST Act, 2017. Therefore held that the applicant is eligible for input tax on roof solar plant.