Components of the definition of Plant and Machinery examined by AAR Madhya Pradesh

Components of the definition of Plant and Machinery examined by AAR Madhya Pradesh in Atriwal Amusement Park case on 09-06-2020 for allowability of ITC to an amusement park

Section 17(5)(d) of CGST law restricts ITC on goods or services received for the construction of the immovable property. However, ITC on plant and machinery is allowed. Plant and Machinery

Includes:

a) Apparatus
b) Equipment and
c) Machinery

Fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both

And Includes

– Such foundation and structural support

But Excludes

(i) Land, Building or any other civil structure
(ii) Telecommunication towers, and
(iii) Pipeline laid outside the factory premises

Held by AAR:

a) Water Slides fall under apparatus, equipment, and machinery, hence ITC is allowed

b) Steel Structures on which water slides are installed fall under structural support, hence ITC is allowed

c) Foundations for installation of machines for Wave pools are civil structures, still, ITC shall be allowed as foundation falls under specific inclusion, and “any other civil structures” fall under the specific exclusion.

d) Machine room, which is a civil structure, erected for protecting machines is not civil structure in the form of foundation and hence ITC is not allowed.

e) Area development and preparation of land on which water slides are placed are interminably bound with land which falls under specific exclusions and hence ITC is not allowed.

f) Swimming pool and wave pool in which slides directly run are not the foundation or support structures but any other civil structure and hence ITC is not allowed.