2026-VIL-104-AAR
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SGST Advance Ruling Authority

GST – Gujarat AAR - Eligibility of Input Tax Credit on goods and services used for setting up of Continuous Catenary Vulcanization (CCV) Tower - Applicant is setting up a new factory for manufacturing of high-voltage cross-linked polyethylene (XLPE) insulated electrical cables and has engaged a third party for engineering, procurement and construction (EPC) of the CCV tower - Whether the applicant is eligible to avail ITC on the inputs and input services used for construction of the CCV tower under Sections 17(5)(c) and 17(5)(d) of the CGST Act, 2017 – HELD - The CCV tower is an essential structural support for the entire CCV machine line used in the manufacture of insulated cables and thus qualifies as "plant and machinery" under the explanation to Section 17(5) of the CGST Act. The CCV tower, made of specialized steel structure, is necessary to support and erect the CCV lines while maintaining the structural integrity, stability, precision and overall efficiency of the manufacturing process – When the ITC sought is on construction of foundation and structural support relating to plant and machinery, it moves out of the ambit of section 17(5)(c) and (d) even if it is on their own account. This being the case, the applicant is eligible for availing the ITC on inputs and input services used lor construction of specialised steel CCV tower to support and erect the CCV lines at the factory of the applicant for manufacture of electrical cables – Since as per CBIC Circular No.219/13/2024-GST when ITC is not restricted even in respect of ducts and manhole used in optical fibre cables under section 17(5) of the CGST Act, 2017, the ITC, on inputs and input services used for construction of steel CCV tower to support and erect the CCV lines, for manufacture of insulated electrical cables also cannot be restricted - The applicant is eligible to avail the ITC on the inputs and input services used for setting up of the CCV tower at the factory for manufacture of insulated cables – Ordered accordingly
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