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Taxpayer is not entitled for input tax credit on the inward supplies for the said activities of design & engineering, supply of plant and equip­ment and erection of plant and equipment for lighting of plant road, boundary and watchtower in view of exclusions stipulated under Section 17(5) of the CGST Act, 2017.

Input Tax Credit Section 16 of CGST Act— On being aggrieved by the Advance Ruling order, the Appellant has filed the instant appeal as regards appellant's (NMDC's) eligibility to take Input Tax credit ITC on GST paid towards:

(i) Design and engineering of lighting for Plant Road, Boundary Wall and Watchtower

(ii) Supply of Plant and Equipment of lighting for Plant Road, Bounda­ry Wall and Watchtower

(iii) Erection of Plant and equipment for Lighting of Plant Road, Bound­ary & Watchtower"

In the instant Appeal, the Appellant seeks addressal on the primary issue as to whether the AAR was right by holding that the items in question merit treatment as a civil structure/immovable property and not as "plant and machinery" and whether the order of AAR dated 24-4-2019 failed to appreciate the scope of Section 16 of CGST Act, 2017.

Held that— The test of immovable property is not relevant for plant and machinery as Section 17(5)(c) and (d) exclude plant and machinery from immovable property. Since, plant and machinery are excluded from immovable property, construction and other activity in relation to plant and machinery shall be eligible for Input Tax Credit unless otherwise restricted. The restriction of ITC is only on the telecom towers, pipelines which are not treated as plant and machinery by virtue of explanation to Section 17(5)(c) and (d).

We affirm with the findings by the AAR that "the provisions facilitating availment of Input Tax credit does not extend any blanket or uncondition­al permission for availment of credit on all items irrespective of its use, place of use and its role in making outward supply of goods or services or both, as appears to have been misconstrued by the applicant. These towers, boundary and watch tower by their very nature appears to be nothing but independent civil structures, having no relationship whatsoever with outward supply"—P.K. Mahapatra, In Re…. [2020] 28 TAXLOK.COM 007 (AAR-Chhattisgarh)