TaxTMI 
TaxTMI 
2025 (8) TMI 551
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....ng similar provisions in the GGST Act, 2017. 2. The present appeal has been filed under Section 100 of the CGST Act, 2017 and the GGST Act, 2017 by M/s. KEI Industries Ltd (for short-'appellant') against the Advance Ruling No. GUJ/GAAR/R/2025/06, dated 21.3.2025. 3. Briefly, the appellant is engaged in the manufacture & supply of extra high voltage [EHV], medium voltage [MV] and low voltage [LV] cables upto 400 KV. Presently, they manufacture EHV cable using the continuous catenary vulcanization [CCV] process. However, the appellant has collaborated with M/s. Brugg Kabel AG, a Swizz company, to upgrade its technology to manufacture EHV cables upto 400 KV by setting up a new manufacturing plant in Gujarat for manufacturing HV/EHV cables using the vertical continuous vulcanization [VCV] process. 4. The appellant, before the GAAR [Gujarat Authority for Advance Ruling], further stated as under: a) that in VCV, the process of insulation of cable cores is done in vertical tubes; b) that the VCV manufacturing line is required to be supported by concrete structure in square form on all sides; c) that the total height of VCV line from ground floor is appr....
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.... Act, 2017. 7. The below mentioned findings, led the GAAR to arrive at the aforementioned ruling, viz a. that the Hon'ble Supreme Court, in the case of Safari Retreats P Ltd. 2024 INSC 756 held that :- (i) u/s 17(5)(c), ibid, for works contract, ITC is not available in respect of services supplied for the construction of immovable property, subject to two exceptions [a] when the goods, services, or both, are received for construction of 'plant and machinery'; and [b] where the WCS supplied for the construction of immovable property, is an input service for further supply of the works contract; (ii) that section 17(5)(d), ibid 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 again to two exceptions, viz [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; (iii) that 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 b....
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.... cables will qualify as 'apparatus' and hence can be said to be a machinery; f) that the second condition that P&M should be used for making outward supply of goods/services also stands satisfied since they will be making outward supply of EHV cables manufactured using VCV lines; g) that since VCV lines qualify as plant and machinery & hence construction of concrete columns & foundation for VCV lines are also P&M in terms of the explanation; h) that though construction of VCV towers is on own account it qualifies as plant and machinery & therefore ITC is available; i) that ITC is available even in terms of CBIC Circular No. 219/13/2024-GST, dated 26.6.2024. 9. Personal hearing in the matter was held on 25.6.2025, wherein Shri Jigar Shah, Advocate along with Ms. Priyanka Kalwani, Advocate, Ms. Devanshi Sharma, Advocate and Shri Adarsh Kumar Jain, VP (Finance) appeared on behalf of the appellant and reiterated the submissions made in the appeal. Shri Jigar Shah also submitted a compilation consisting of the relevant legal provisions and the below mentioned case laws viz (i) Municipal Corporation of Greater Bombay & Ors. - [AIR 1991 SC 6....
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....ed to pull the insulated core from X head and maintain the core in the center of the tube. 10 Dancer It is used to control the takeup speed so as to maintain the cable tension. 11 Takeup The insulated core is rewinded in drums at the takeup units. 12 Pay off The conductor drums which need to be insulated are loaded at payoff units. 1.13 The weight of the significantly heavy components to be placed on each floor to run VCV line is enumerated below: Sr. No. Item Quantity Description of machinery Weight 1 1 Capstan CA 13000 kg 2 1 Meter counter 20 kg 3 1 Conductor clamp pneumatic 50 kg 4 1 Air compressor 100 kg 5 1 Conductor preheater 50 Kw 6 2 Cleanroom 15280 kg 7 3 Oktabin feeding station 200 kg 8 1 Buffer hopper 400 litres 100 kg 9 2 Buffer hopper 100 litres 55 kg 10 4 Hopper loader 10 kg 11 2 Drying bin 180 kg 12. 1 Dry air generator 140 kg 13 1 Extruder (movable) 1200 kg 14 1 Extruder (movable) 12000 kg 15 1 Extruder (movable) 2000 kg 16 1 Hydraulic uni....
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....ices 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 capitalisation, to the said immovable property; Explanation.- For the purposes of this Chapter and Chapter VI, the expression "plant and machinery" means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes- (i) land, building or any other civil structures; (ii) telecommunication towers; and (iii) pipelines laid outside the factory premises. 15. On going through the imp....
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....n issued by CBIC vide its Circular No. 219/13/2024-GST, dated 26.6.2024, viz. Issue Clarification Whether the input tax credit on the ducts and manholes used in network of optical fiber cables (OFCs) for providing telecommunication services is barred in terms of clauses (c) and (d) of sub-section (5) of section 17 of the CGST Act, read with Explanation to section 17 of CGST Act ? 1.Sub-section (5) to Section 17 of the CGST Act provides that input tax credit shall not be available, inter alia, in respect of the following: i. 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; or ii. 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. 2. Explanation in section 17 of CGST Act provides that the expression "plant and machinery" means apparatus, equipment, and machinery fixed to earth by foundation or structural support that ....