TaxTMI 
TaxTMI 
2025 (5) TMI 1100
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....- (supply of Rs. 94,12,500/- + CGST Rs. 8,47,125/- + SGST Rs. 8,47,125/-); • that they have made the payment for the said supply except 5% of the contract value as per payment terms; • that the installation of a 10 Ton Crane in the PEB was as per the specifications mentioned in the layout drawing provided by M/s. Konecranes and Demag Private Limited; • that the load of the crane is borne by the PEB; • that it is not possible to install the crane independently without the support of the PEB; • that they have enclosed the Chartered Engineer's certificate dated 28/08/2023 along with the load calculations and crane loads with the application. 4. The applicant further stated that the PEB is a special kind of multi utility building; that it is not merely a conventional roofed factory building meant to protect the men, materials and machineries from the weather but is a plant and machinery in itself as it is incrementally strong with large foundation, pillars and beams with support mountings across the length and breadth; that it facilitates the operation of overhead crane(s) which makes the entire PEB a plant and machine....
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....e applicant also intends to avail proportionate credit on other capital goods like rails, electrification, etc installed or erected for smooth operation of the crane. 10. Before dwelling on to the question on which the applicant has sought ruling, it would be prudent to reproduce the relevant sections, for ease of understanding viz • Section 2. Definitions.- In this Act, unless the context otherwise requires,- (59) "input" means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business; (60) "input service" means any service used or intended to be used by a supplier in the course or furtherance of business; • Section 16. Eligibility and conditions for taking input tax credit (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of suc....
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....on [a] steel, cement & other consumables used in the execution of the works contract; and [b] installation and erection services of the PEB, when supplied for construction of immovable property in the form of the factory which is an integrated factory building with gantry beam, which is used for mounting across the pre-cast concrete beams, poles over which crane would be operated. 13. At the cost of repetition, the applicant has received works contract service from M/s. Shree Steel Building Technology, Ahmedabad, regarding installation and erection services of PEB, valued at Rs. 1.11 crores. Works contract, is defined under section 2 (119) of the CGST Act, 2017 as a contract AUT for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. As per the copy of the invoice attached with the application papers, the service received by the applicant is classified under SAC 995441 involving GST of Rs. 16,94,250/ -. Now, S....
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....xable person for the construction of an immovable property made not on his own account. Construction is said to be on a taxable person's "own account" when (i) it is made for his personal use and not for service or (ii) it is to be used by the person constructing as a setting in which business is carried out. However, construction cannot said to be on a taxable person's "own account" if it is intended to be sold or given on lease or license. 33. Section 17 (5) incorporates an explanation which provides that the word "construction" used in clauses (c) and (d) includes reconstruction, renovation, additions, alterations or repairs, to the extent of capitalisation, to the immovable property. Thus, a very wide meaning has been assigned to the expression "construction" by the said explanation. 34. There is hardly a similarity between clauses (c) and (d) of Section 17 (5) except for the fact that both clauses apply as an exception to sub-section (1) of Section 16. Perhaps the only other similarity is that both apply to the construction of an immovable property. Clause (c) uses the expression "plant and machinery", which is specifically defined in the explanation. Clause ....
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....ces supplied for the construction of immovable property, subject however to two exceptions [a] when the goods, services, or both, are received for construction of 'plant and machinery'; and [b] where the works contract service supplied for the construction of immovable property is an input service for further supply of the works contract. What however cannot be ignored is also the fact that in the second Explanation under section 17 (5), ibid, land, building or any other civil structures have been excluded from the definition of plant and machinery. 17. Further, while analyzing section 17 (5) (d), ibid, the Hon'ble Supreme Court has concluded that it seeks to exclude from the ambit of sub- sections 16(1) & 18(1), ibid, services received by a taxable person to construct an immovable property on his own account subject however, to two exceptions, where goods or services or both are received by a taxable person to [a] construct an immovable property consisting of a "plant or machinery"; and [b] for the construction of an immovable property made not on his own account; The Hon'ble Supreme Court further, explains that construction is said to be on a taxable perso....