TaxTMI 
TaxTMI 
2020 (8) TMI 906
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....ST Act would mean a reference to the similar provisions under the MPGST Act and vice-versa. At places we may refer it as GST Act. 2. The present appeal has been filed under section 100 of the Central Goods and Service Tax Act, 2017 and the Madhya Pradesh Goods and Services Tax Act, 2017 [hereinafter also referred to as "the CGST Act and MPGST Act"] by Unity Traders, Jabalpur (hereinafter also referred to as the "appellant") against the order of Authority for Advance Ruling No. 06/2020 dated 10.02.2020. BRIEF FACTS OF THE CASE The Appellant is a partnership firm engaged in providing Clearing & Forwarding Agent Service. As a C&F Agent, the firm stores goods of other company and charges rent for the same. The firm has 2 separate GST R....
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....ered & unregistered contractors for construction & maintenance contract of building is admissible under section 17(5) of CGST Act, 2017. 3. We hold that no ITC of GST paid on goods purchased & works contract service received during the FY 2017-18 for the purpose of construction & maintenance of warehouse is admissible under section 17(5) of CGST Act, 2017. QUESTIONS RAISED BEFORE THE APPELLATE AUTHOURITY FOR ADVANCE RULING (AAAR) The following questions, which are the very same as posed before AAR, have been posed before the Appellate Authority: - 1. Whether ITC of GST paid on goods purchased for the purpose of construction & maintenance of Warehouse such as Vitrified Tiles, Marble, Granite, ACP Sheet, Steel Plates, ....
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....e of GST itself. 4. That the Ld. ARA has erred both in law and fact of the case by not allowing the ITC on the goods and services used for maintenance of warehouse and cost of which is booked as revenue expenditure in Profit and Loss account and is not capitalized in the cost of warehouse and the same has not been covered by way of explanation to section 17(5)(d) of the CGST Act, 2017. PERSONAL HEARING The appellant was issued notice for personal hearing to appear on 22.07.2020 and 25.08.2020 but he kept on asking for adjournment despite being offered hearing through Google Meet. The case is being decided as per written submissions on merit. DISCUSSION AND FINDINGS 1. We have carefully gone through the application of the Appe....
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.... own account including when such goods or services or both are used in the course or furtherance of business. Explanation: For the purposes of clauses (c) and (d), the expression "construction" includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property. 7. As per the Section 17 (5) of CGST Act mentioned above, the Input tax credit shall not be available on the goods and services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business. 8. The definition of immovable property is not....
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.... 12. Appellant in his all the three questions has not put forth such a question. He has never segregated construction from maintenance but rather has used only comprehensive phrase "Construction and Maintenance". He has never spelt out accounting treatment of inward supply of goods or services or both received by him for construction of an immovable property. The explanation appended at the end of sub-section allows ITC to the extent it is not capitalised. Capitalisation or Non-capitalisation of these expenses is certainly not a permanent indelible mark in the account books. These accounting entries may be modified, altered or deleted as per prevailing/ changing contingencies. These entries are not static but dynamic. Since such a question....