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Eligibility of ITC on goods/services received for construction of hotel building

Input tax credit— In the instant case, applicant is engaged in the business of supply of accommodation, restaurant and renting of immovable property (banquet hall) services to its customers. The instant proceedings have arisen out of an appeal filed by applicant against the advance ruling passed by AAR. AAR rejected the application filed by applicant on the grounds that issues raised by them were sub-judice. While deliberating the matter, members of the Authority for Advance Ruling observed that on the issue of admissibility of ITC in respect of goods/services received while constructing Hotel including restaurant & banquet hall, on which applicant has sought advance ruling, is pending decision in Writ Petition before the Hon'ble High Court of Uttarakhand in case of M/s Rosewood Hospitality (P) Ltd. Further, the Authority for Advance Ruling also observed that though the admissibility of ITC on goods services received for construction of immovable property was decided by the Hon'ble High Court of Odisha in case of M/s Safari Retreats (P) Ltd, revenue's appeal in the matter is pending. Held that— In fact, in spite of being pointed out by the appellant about the show cause notice mentioning only two issues in common with the writ, it appears that the applicant was summarily rejected without in depth scrutiny. We, therefore, are of the view that the Learned AAR are required to examine referred cases and all the six issues individually on merits and pass a detailed speaking order if they are not sub judice.