TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 551
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....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 approximately 152 mtrs; that each floor inside VCV tower will be 12 mt....
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....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 be used by the person constructing as a setting in which business is carried out, further stating that construction cannot be said to be on a taxable person's "own account" if it is intended....
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....anufactured 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 686]; (ii) Bharti Airtel Ltd. - [2024 (11) TMI 1042-SC] (iii) Bharti Airtel Ltd. - [2024 (12) TMI 998-SC] (iv) Re: Atriwal Amusement Park - [2020 (7) TMI 477-AAR MP] (v) Re: Tarun Realtors P Ltd. - [2020 (3) TMI 981-AAR Karnataka] (vi) Safari Retreats P Ltd. - [2024 (10) TMI 286-SC....
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.... 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 unit 3 functions 100 kg 17 1 Heating cooling unit 900 kg 18 1 Crosshead 1310 kg 19 1 Crosshead stand 470 kg 20 1 Wall thickness measuring device 250 kg 21 1 Conductor postheater 1500 kg 22 1 Nitrogen valve station 130 kg 23 1 Turn-around pressure vessel 26500 kg 24 1 Line PC 200 kg 25 1 Cabinet extruder drives 300 kg 26 1 Cabinet extruder drives 300 kg 27 1 Cabinet sub distribution 450 kg 28 1 Cabinet for temperature control 300 kg 29 1 Cabinet for temperature control ....
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....nd 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 impugned ruling, we find that the GAAR has not given a finding on whether the concrete structure, claimed by the appellant to be necessary to support and erect the VCV lines, forms a part of plant and machinery. Irrespective of the fact that whether it is a works contract or otherwise, in terms of section 17(5) (c) and (d), plant and machinery stand excluded from the apportionment of credit and blocked credits. We are also mindful of the fact that section 17(5)(d) uses plant or machinery. However, vide section 124 of the Finance Act, 2025, the word 'or' has been changed to 'and', though the same is yet to be notified. 16. On going through the layout of the VCV line which is reproduced in the impugned ruling, the process inside VCV tower u....
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....ived 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 are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes land, building or any other civil structures; telecommunication towers; and pipelines laid outside the factory premises. 3. Ducts and manholes are basic components for the optical fiber cable (OFC) network used in providing telecommunication services. The OFC network is generally laid with the use of PVC ducts/sheaths in which OFCs are housed and service/connectivity manholes, which serve as nodes of the network, and are necessary for not only laying of optical fiber cable but also their upkeep and maintenance. In view of the Explanation in section 17 of the CGST Act, it appears that ducts and manholes are covered under the definition of "plant and mach....