The Karnataka Appellate Authority of Advance Ruling (AAAR) held on AAR ruling held that the ‘Landfill-pit is a civil-structure, not plant and machinery, no (ITC) is available.
The petitioner is the owner of Mother Earth Environ Tech Pvt. and does the business of solid waste management. They furnish the services towards the treatment, storage, and disposal of the wastes. They used to accumulate the waste which is not good for health from distinct industries in Karnataka and dispose of that under the course of the Central Pollution Control Board (CPCB) and Karnataka State Pollution Control Board (KSPCB). Towards the processing and disposal of the solid waste the company has opted for the land via government on lease and built the landfilling pit towards which the solid waste is furnished and closed and sealed for 30 years.
So as to receive a ruling on the classification of the service furnished through them the Appellant approaches the Authority for Advance Ruling (AAR) sought for the ruling upon the concern that if the land filing pit would be acknowledged as ‘Plant and machinery’ and entitled for the ITC or the same shall be recognized as a civil structure and thus becomes not eligible for the ITC.
AAR held that the landfilling pits practised towards the treatment, storage, and disposal of hazardous waste does not be considered as plant and machinery despite the same being capitalized as such owing to significant earthwork. The same shall be differentiated from the apparatus or the equipment as indeed structural assistance.
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The bench comprises Ranjana Jha and Shikha C. while uploading the ruling of the lower council seen that the civil structures like foundation and supporting structure towards the fastening of the plant and machinery to the earth comes under the portion of plant and machinery. But any additional civil structure does not include in the plant and machinery. The landfilling pit does not come under the structure and is thus not entitled to the ITC claim.
