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ITC blocked on pipeline laid outside factory premises, not considered as plant and machinery

May 12, 2021[2021] 127 taxmann.com 172 (AAR - TAMILNADU)
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GST : Supplier of LPG not eligible for availment of input tax credit of GST paid on goods and services for laying of transfer pipeline but eligible for availment of input tax credit of GST paid on goods and services used for setting up refrigerated storage tank and setting up of Fire Water reservoir(tank)

• Where applicant is engaged in supply of Liquefied Petroleum Gas (LPG) in bulk and in cylinders to domestic /other business segments.; it imports LPG from outside India and store/processes same at various terminals located in India

• Held that applicant is not eligible for availment of input tax credit of GST paid on goods and services for laying of transfer pipeline and foundation and structural support for such pipeline which is intended for unloading Propane/Butane from Vessel/Jetty to Terminal as pipeline laid are outside the factory premises as being restricted under section 17(5). Applicant is eligible for availment of input tax credit of GST paid on goods and services used for setting up refrigerated storage tank including structural support thereon subject to condition that tanks are capitalized in their books of accounts as Plant and Machinery and not as Immovable Property and applicant are not eligible to avail input credit of goods and services used for Pile foundation. Applicant is eligible for availment of input tax credit of GST paid on goods and services for setting up of Fire Water reservoir(tank) including structural support subject to condition that tanks are capitalized in their books of accounts as Plant and Machinery and not as Immovable Property and the applicant are not eligible to avail input credit of goods and services used for 'Pile foundation and input credit on goods and services used for such pile foundation.

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