ITC NOT ELIGIBLE ON CAPITAL GOODS PROCURED FOR BUILDING LNG JETTIES
GUJARAT APPELLATE AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX
Case Name: Swan LNG Pvt. Ltd (GST AAAR)
Advance Ruling No. GUJ/GAAAR/APPEAL/2022/06
Date of Judgement/Order: 09/05/2022
Important Point of AAAR Order
- In view of the above discussion, we find that the LNG Jetties being built by the appellant are not in the nature of ‘plant and machinery’ being foundation for equipment, apparatus, machinery for regasification to be installed thereon. Therefore input tax credit on inputs, input services and capital goods for the purpose of building these LNG Jetties are not admissible.
- In view of the foregoing, we reject the appeal filed by M/s. Swan LNG Pvt. Ltd., and confirm the Advance Ruling No. GUJ/GAAR/R/46/2020 dated 30.07.2020 by holding that (1) LNG Jetties being built by the appellant are not covered within the expression ‘plant and machinery’ as foundation to equipment, apparatus, machinery to be installed on it in terms of Section 17 of the CGST Act, 2017 and (2) the appellant cannot avail input tax credit of GST paid on inputs, input services and capital goods procured for the purpose of building the LNG Jetties in terms of Section 16 of the CGST Act, 2017.
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