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‘Bunds’ are not ‘plant and machinery, therefore, ITC is not admissible in respect of section 17(5) of CGST Act.

Input Tax Credit — Aggrieved by the aforesaid ruling, the Deputy Commissioner,has filed the present appeal. The ruling is as follows—Question— “Whether input tax credit is admissible to the applicant under the GST Acts in respect of bunds which are constructed and used in the manufacture of salt and bromine chemicals?” Answer: Input tax credit of GST paid on goods and services used to construct the “bunds” is admissible to M/s. Satyesh Brinechem Private Limited, provided that the bunds are used for making zero rated supplies and fulfill the conditions which are necessary for treating the bunds as “plant and machinery” Held that— we modify the Advance Ruling No. GUJ/GAAR/R/19/2019 dated 11.09.2019 by holding that- ‘Bunds’ constructed by M/s. Satyesh Brinechem Private Limited, Ahmedabad [GSTIN 24AAUCS2572G1Z1) are not ‘plant-and machinery within the definition of the said term under Section 17 of the GST Acts, and therefore, in view of clauses (c) and (d) of. Section 19(5) read with explanation below Section 17 of the GST Acts, Input Tax Credit in respect of works contract service or goods or services used in construction of ‘bunds’ is not admissible to M/s. Satyesh Brinechem Private Limited, Ahmedabad. — Satyesh Brinechem Private Limited, In Re… [2020] 20 TAXLOK.COM 150 (AAAR-Gujarat)