ITC Available on Construction of CCV Tower Used in Cable Manufacturing

The Gujarat Appellate Authority for Advance Ruling held that input tax credit is admissible on goods and services used for setting up a Continuous Catenary Vulcanization (“CCV”) Tower employed in the manufacture of insulated electrical cables. 

The Authority concluded that the CCV Tower constituted an integral structural support system indispensable to the cable manufacturing process and therefore qualified as “plant and machinery” within the meaning of the Explanation to Section 17 of the CGST Act. 

Consequently, the restriction on input tax credit under Sections 17(5)(c) and 17(5)(d) relating to immovable property was held inapplicable.