Input tax credit— Section 16 of CGST Act— In the instant case, the applicant seeking an advance ruling in respect of the following questions—

“Where inputs are consumed in the construction of an immovable property outside MAFFFL’s licensed premises which are meant and intended to be for the provision of taxable output services, whether input tax credit was available to the assessee?”

The applicant MAFFFL is in the business of providing fuel infra service wherein the ATF of Oil PSUs is stored in the storage tank. The applicant is setting up Connector Pipeline for Fuel Hydrant System at CSIA, Mumbai. With the help of Fuel Hydrant System, the fuel is supplied to the airlines. The applicant contended that the Connector Pipeline Laying and Associated work forms the important part of Fuel.

The sole issue involved in the present case is regarding entitlement of ITC with regard to the said pipeline. The applicant has failed to establish how it is entitled to ITC in the presence of the express legal bar to claim such ITC. Apart from the entitlement of ITC, in respect of said 90% of the pipeline outside their premises, there is no other issue involved in the present case. Hence, the question is answered accordingly.

Held that— Inputs consumed in the construction of an immovable property outside MAFFFL’s licensed premises which are meant and intended to be for the provision of taxable output services,  input tax credit will not available to the assessee.