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GST – Tamil Nadu AAR - Input Tax Credit – Blocked Credit - Pipeline, Capital goods, foundation and structural support – laying of pipelines outside the factory premises - Scope of expression ‘Plant and Machinery’ - Eligibility to input tax credit on goods and services for laying of transfer pipeline and the foundation and structural support for such pipeline which are intended for unloading of goods (propane and butane) from the vessel to the Terminal – HELD - With respect to goods and services for laying of transfer pipeline and the foundation and structural support for such pipeline, the applicant sources Pipes on own account and the same is laid as a ‘Works Contract’ including the foundation. Section 17(5) of CGST Act restricts the credit on such goods received for construction & Works Contract service received except when such ‘goods/Works Contract’ services are availed in respect of ‘Plant and Machinery’ - the Explanation to Section 17(5) of CGST Act specifies that apparatus, equipment, and machinery fixed to earth by foundation, used for making outward supply of goods is ‘Plant and Machinery’ and there are specific exclusions, which include ‘Pipelines laid outside the factory premises’ – Applicant’s interpretation ‘Pipeline laid outside the factory premises and used for making outward supply’ are alone excluded has no merit - If the intention of the statute is to exclude only those Pipelines laid outside the factory for outward transmission’, the Explanation does not reveal the same – Input tax credit of Pipes and Pipelines laid outside the factory’ is not available for the applicant. The decisions relied upon by the applicant is based on the earlier laws and do not have any application while considering the GST Provisions, in as much as the GST law has clearly defined what is to be considered as ‘capital goods’, ‘Plant and Machinery’ and the specific exclusions - the applicant is not eligible for availment of input tax credit of GST paid on goods and services for laying of transfer pipeline and the foundation and structural support for such pipeline for transporting propane/Butane from jetty to the Terminal as pipelines laid outside the factory premises as being restricted under Section 17(5) of the CGST Act read with the Explanation thereof
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