The Apex court admitted that the petition furnished by the GST department with respect to the order of the Odisha High court in which the High court ruled that ITC would be available for the paid GST during the construction of the immovable property for the purpose of rent.
The applicant, M/s Safari Retreats Pvt Ltd laid attention that the immovable property planning to let out for rent and claim for the Input tax credit could be taken on since they are operating on the business activity of constructing shopping malls with the intention of letting out that to various tenants and lessees.
It found that bigger quantities of the materials along with the additional inputs in the form of cement, Sand, Steel, Aluminium, Wires, plywood, paint, lifts, escalators, Air-conditioning plant, chillers, electrical equipment, special façade, DG sets, Transformers, building automation systems along with the services in the form of Consultancy, Architecture, legal and professional, engineering and other would be needed for the mentioned construction purpose.
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But the revenue department refused the claim. The bench consists of Chief Justice K S Jhaveri and Justice K R Mohapatra see that the intention of the act would be the constant provision for charging a collection of tax for the intrastate supply of goods and services both central and state and for preventing the numerous taxes.
Postponing the case to 29th September, Justice Indira Banerjee and Justice M M Sundresh pronounced an order that “List on 29.09.2022, at the top of the Board. Written notes of submissions be filed in the meanwhile.”
Though Safari Industries might have filed a suit and got a favorable order from Odissa HC, there are many such individuals who are awaiting the decision of the Supreme Court in this regard as all property developers are interested in the outcome of this case.
Continue to post the progress in this SLP at Supreme Court.