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The Landfilling pit is not a plant and machinery but a civil structure.

Input Tax Credit — In the instant case, applicant is into the business of solid waste management. They provide services for treatment, storage and disposal of hazardous waste. They obtained the land on leas from the Government and constructed land filling pit for processing and disposal of solid waste. They have given a detailed brief on the construction of the land fill pit. On completion of filling landfill pit, it is closed and sealed as per the environmental guidelines and it is maintained for further 30 years without doing any activity on that particular landfill pit. The applicant contends that the landfill pit is plant and machinery and they have capitalised the same in their books of accounts. Further, they have claimed depreciation under the income tax excluding the GST paid thereon. In view of the above, the applicant has sought advance ruling on the following question: Whether the term “other civil structure” used in the definition of “Plant and Machinery” restricts the Land filling Pit from considering it as Plant & Machinery and thereby restricts ITC to be availed on it. Held that— On a case to case basis, the Hon’ble High Court has granted the credit. Inasmuch as the said section is found to be valid by the Hon’ble High Court, we do not find any reason to go beyond the Statutory Provisions. However, since the appeal against the High Court order supra is pending before the Hon’ble Supreme Court, we refrain from commenting on the eligibility of the ITC in the instant case. The Landfilling pit is not a plant and machinery but a civil structure. — Mother Earth Environ Tech Private Limited., In Re… [2020] 28 TAXLOK.COM 037 (AAR-Karnataka)

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