Input tax credit on structural support for plant and machinery is admissible when the structure forms part of the equipment foundation.

Input tax credit on inputs and input services used to construct a concrete VCV tower is admissible where the tower functions as an essential foundation and structural support for plant and machinery used in making outward supplies. Because the tower was treated as part of the plant and machinery, rather than a mere civil structure, the restrictions in section 17(5)(c) and section 17(5)(d) of the CGST Act did not apply. The ruling relied on the statutory inclusion of foundation and structural supports within plant and machinery and applied the same principle used for similar support structures in utility networks.

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Issues: Whether input tax credit is admissible on inputs and input services used for construction of a concrete VCV tower erected to support and operate the VCV lines for manufacture of EHV cables, in view of the restrictions under section 17(5)(c) and 17(5)(d) of the CGST Act.

Analysis: The concrete tower was found to be an essential and integral structural support for the vertical continuous vulcanization line, with the machinery fixed to earth by foundation and structural support. On the facts placed, the tower was not treated as a mere civil structure housing equipment, but as part of the foundation and structural support of plant and machinery used for making outward supplies. Since the explanation to section 17 includes foundation and structural supports within plant and machinery, the exclusion in clauses (c) and (d) was held not to apply. The ruling also drew support from the departmental clarification on ducts and manholes used in OFC networks, applying the same principle that credit is not blocked where the structure forms part of plant and machinery.

Conclusion: Input tax credit on inputs and input services used for construction of the concrete VCV tower is admissible and is not blocked under section 17(5)(c) or 17(5)(d) of the CGST Act.

Ratio Decidendi: Where a concrete structure is established as foundation or structural support for plant and machinery used in making outward supplies, it falls within the statutory definition of plant and machinery and credit on its construction is not blocked under section 17(5)(c) and 17(5)(d).

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