Indo American Superspecalities Limited vs. Assistant Commissioner(St)
Held
The High Court set aside the assessment order and remanded the matter back to the assessing authority. The authority was directed to apply the 'functionality test' as laid down by the Supreme Court in *Safari Retreats* to determine if the multiplex qualifies as 'plant and machinery' under Section 17(5)(d) for ITC eligibility.
Facts
The petitioner, a registered person, constructed a multiplex for renting out and sought Input Tax Credit (ITC) on goods and services used in its construction. The assessing authority denied ITC, citing Section 17(5)(d) which bars ITC for immovable property construction. The petitioner contended that the multiplex should be treated as 'plant and machinery'.
Key Issues
Whether Input Tax Credit is admissible for the construction of a multiplex intended for leasing/renting out, and whether such a multiplex can be classified as 'plant and machinery' under Section 17(5)(d) of the GST Act.
Sections Cited
Section 17(5)(d), Section 16(1), Schedule II (clauses 2 and 5)
AI-generated summary — verify with the full judgment below
APHC010357632023
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3529] WEDNESDAY, THE TWENTY SECOND DAY OF APRIL TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 18418/2023 Between:
INDO AMERICAN SUPERSPECALITIES LIMITED, TS NO.567 AND 568, SYAMALADAS AGRAHARAM, OPP . GUNTA ROAD, NAAZ CENTER, GUNTUR DISTRICT. REPRESENTED BY ITS MANAGING DIRECTOR, SRI K.SIVARAMAKRISHNA.
...PETITIONER AND 1. ASSISTANT COMMISSIONERST, KOTHAPET CIRCLE, GUNTUR DIVISION, GUNTUR.
JOINT COMMISSIONER ST, GUNTUR II DIVISION, GUNTUR.
UNION OF INDIA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI 110001. 4. STATE OF ANDHRA PRADESH, REPRESENTED BY ITS SPECIAL CHIEF SECRETARY, REVENUE (CT) DEPARTMENT, A.P. SECRETARIAT, VELAGAPUDI, AMARAVATHI MANDAL, GUNTUR DISTRICT.
...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court
2 RRR,J & TCDS,J W.P.No.18418 of 2023
may be pleased tople
The judgment continues below.
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