TaxTMI 
TaxTMI 
2025 (10) TMI 1246
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....nt was required to lay a new underground cable line extending 2.7865 kms. This installation will consist of 66 KV single core cables (3 +1 configuration) and will utilize 630 mm2 aluminium corrugated sheathe cables. The objective is to ensure a reliable power supply from GETCO substation to the applicant's switchyard within the factory premises. 3. GETCO had provided two options for the execution of the cable laying work:- (a) Execution by GETCO: GETCO may undertake the work directly through its vendors. (b) Supervised Installation: The applicant may conduct the work under the supervision of GETCO. 4. The applicant chose the second option, which involved carrying out the cable laying work on their own cost under the supervision of GETCO. The applicant selected, M/s Rajesh Power Services Pvt. Ltd (the vendor), from the approved authorised vendors of GETCO, to execute the installation of the underground cable line and supply the requisite materials. 5. The process of laying of cables has been explained by the appellant, as under :- • The transmission of electricity from the power station to the factory premises requires the excavation of a tren....
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....at the cables and wires can be removed from ducts & manholes when necessary & replaced with new ones demonstrating their movable nature; • that in terms of explanation to section 17(5), cables/wires & equipment falls within the ambit of 'plant and machinery'; • that the phrase 'any other civil structure' as appearing in explanation to 17(5) is to be read ejusdem generis to the preceding words land and building; that the phrase 'any other civil structure' is to be restricted to immovable property in the nature of land and building; that the structure used as an apparatus in the manufacturing activity will not be 'any other civil structure' & will be plant and machinery; • that the ITC is eligible on ducts and manholes; that they would like to rely on Circular no. 219/13/2024-GST dated 26.6.2024, which provides clarification on the availability of ITC for ducts and manholes used in the network of optic fiber cables. • that they would also like to rely on the GAAR ruling in the case of M/s Elixir Industries Pvt. Ltd [GUJ/GAAR/R/2024/18] which is entirely on the same facts. 8. Personal hearing was granted on 29.07.2025, wherein Shr....
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....nditions 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 such person. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37; (b) he has received the goods or services or both. Explanation.- For....
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....er the thirtieth day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier. Provided that the registered person shall be entitled to take input tax credit after the due date of furnishing of the return under section 39 for the month of September, 2018 till the due date of furnishing of the return under the said section for the month of March, 2019 in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18, the details of which have been uploaded by the supplier under sub-section (1) of section 37 till the due date for furnishing the details under sub-section (1) of said section for the month of March, 2019. (5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017-18, 2018-19. 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed up to the thirtieth day of November, 2021. (6)....
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....ns specified in Schedule III, [except,- (i) the value of activities or transactions specified in paragraph 5 of the said Schedule; and (ii) the value of such activities or transactions as may be prescribed in respect of clause (a) of paragraph 8 of the said Schedule .; (4) A banking company or a financial institution including a non-banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances shall have the option to either comply with the provisions of sub-section (2), or avail of, every month, an amount equal to fifty per cent. of the eligible input tax credit on inputs, capital goods and input services in that month and the rest shall lapse: Provided that the option once exercised shall not be withdrawn during the remaining part of the financial year: Provided further that the restriction of fifty per cent. shall not apply to the tax paid on supplies made by one registered person to another registered person having the same Permanent Account Number. (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit s....
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....ve or home travel concession: Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force. (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 capitalisation, to the said immovable property; (e) goods or services or both on which tax has been paid under section 10; (f) goods or services or both received by a non-resident taxable person except on goods imported by him; (fa) goods or services or both received by a....
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.... input tax credit. However, we are accepting the claim of the applicant that the conditions of Section 16 stand fulfilled. On this assumption, we proceed further. 14. The second averment of the applicant is that they are not hit by the exclusions provided in Section 17(5)(c) and 17(5)(d) ibid. As per Section 17(5)(c), ITC shall not be available in respect of the works contract, when supplied for construction of an immovable property (other than plant and machinery), except when it is an input service for further supply of works contract. Further, Section 17(5)(d) also imposes similar restrictions on the ITC of the goods or services received by the tax payer for construction of an immovable property (other than plant and machinery), on his own account. We find that the goods in question are cables, wires, switchyards and aluminium corrugated sheaths. As per the applicant, these goods can be easily dismantled and transported from one location to another, if the need arises. To be specific, the cables and wires are designed to be flexible and lightweight, enabling them to be coiled and relocated without any significant effort. Their modular nature allows them to be connected or dis....
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....ying 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 machinery" as they are used as part of the OFC network for making outward supply of transmission of telecommunication signals from one point to another. Moreover, ducts and manholes used in network of optical fiber cables (OFCs) have not been specifically excluded from the definition of "plant and machinery" in the Explanation to section 17 of CGST Act, as they are neither in nature of land, building or civil structures nor are in nature of telecommunication towers or pipelines laid outside the factory premises. 4. Accordingly, it is clarified that availment of input tax credit is not restricted in respect of such ducts and manhole used in network of optical fiber cables (OFCs). either under clause (c) or under clause (d) of sub-section (5) of section 17 of CGST Act. As per the above circular, ITC is not restricted even in respect of ducts and manhole used in optical fibre cables under Section 17(5) of the CGST Act. Therefore, there is no reason to restrict the ITC on the ....