Appellate Authority for Advance Ruling —- ITC of GST paid on leasehold rights– The appellant are engaged in the business of manufacture and supply of industrial & Medical gases, including oxygen (both Industrial & Medical Grade), nitrogen, argon etc. State Industrial Promotion Corporation of Tamilnadu had entered into an agreement dated 22.07.1993 with India Pistons Limited (IPL) for lease of an area of land for the purpose of setting up a piston manufacturing industry. The appellant had approached IPL for transfer of the leasehold rights for the remainder period of 72 years along with superstructures, for setting up of State of the art medical and industrial gases plant. The appellant sought an Advance Ruling as to whether they would be entitled to avail and utilize ITC of GST Charged by IPL if such transaction is considered to be a supply. The AAR held that the applicant is not entitled to avail and utilize ITC of GST charged by IPL as the same is restricted under Section 17(5)(d) of the Act 2017, if such transaction is considered to be a supply. Being aggrieved the appellant filed present appeal. The authority concurred with the reasoning and the ruling given by the AAR.

 Held that:- The Hon’ble Appellate Authority for Advance Ruling uphold the ruling of the AAR.