TaxTMI 
TaxTMI 
2023 (8) TMI 1200
X X X X Extracts X X X X
X X X X Extracts X X X X
...., facts or circumstances supporting the original advance ruling have changed. 4. In terms of Section 104 of the Act, where the Authority finds that advance ruling pronounced by it under sub-section (4) of Section 98 or under sub-section (1) of section 101 has been obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the applicant as if such ruling had never been made. 5. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s J.K. FENNER (INDIA) LIMITED having their Project office at No. 3, Melakal Road, Kochadai, Madurai - 625 016 (hereinafter called the 'Applicant') are registered under the GST Act with GST....
X X X X Extracts X X X X
X X X X Extracts X X X X
....contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:- .... (c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service; (d) goods or 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. 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 capitalization, to the said immovable property; 2.5 In view of above facts, input tax credit (ITC) in general is not available for construction, reconstruction, renovation, addition, alteration or repair of an immovable property even when such goods or services or both are used in the course or furtherance of business. However, the limitation in such a scenario is to the ex....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y has been undertaken which is accounted as revenue expenses and required ruling on the eligibility to input tax credit in respect of such AMCs. The applicant was asked to furnish the following documents:- (i) Detailed write up on accounting of the cost of repairs incurred on the factory repairs and subsequent asset value arrival for the factory. (ii) Accounting standards in respect of repairs and that of the factory. (iii) P & L /balance sheet for the period before and after repairs. 4.2 In response to that, the applicant submitted the following documents:- 1) Write -up on Capital Vs Revenue nature of expenses accounting. 2) Sample accounting document for Capital nature of Civil expenses-Annexure-1 3) Sample accounting document for Revenue nature of Civil expenses-Annexure-2 4) P&L for both nature of expenses for 2 months (2022-23) -Annexure-3 4.3 In the write up, the Applicant has contended that,- a) Initial Cost of Recognition as Fixed Asset as per hid AS 16 PPE (Property, Plant & Equipment). This includes PPE besides all Civil Works which are considered as Project Cost. b) An Asset can be cap....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to the existing built up area and the question of treatment of costs of such additional area in the books of account does not arise. • The cost of the referred work is charged to the revenue account (Profit and loss account). • If civil work results in addition of area, the cost will be added to the Fixed Assets i.e., capitalized in the books of accounts (Balance Sheet) as per accepted accounting principles. 5.0 We have carefully examined the statement of facts, supporting documents/photographs filed by the Applicant along with application, submissions made at the time of Personal hearing and the comments of the Central/State Jurisdictional Authority. 5.1 The Applicant is engaged in manufacturing of transmission rubber belts, oil seals etc. in their application filed before the Authority, it has been stated that they have to constantly incur expenditure on repair and maintenance of factory buildings which are considered as crucial for continuity and seamless production. Repair works in factory building are in the nature of painting, renovation, debris removal, changing of roof etc., which is the cost incurred to ensure that the asset continues to op....