ITC on construction for leasing property required reconsideration in light of Safari Retreats; orders set aside: HC
Source: Taxmann.com Alerts — Case Laws (GST).
Case: Deep Property Buildcon and Developers (P.) Ltd. vs. State Tax Officer (ST) [2024] 167 taxmann.com 31 (Madras).
Court / Bench: Madras High Court | Judge: Senthilkumar Ramamoorthy | Date of judgment: 20-08-2024. Counsel (as reported): Mr. G. Dhana Madhri, Raghavan Ramabadran.
Statutes referred: CGST Act / Rules, 2017; Tamil Nadu GST Act / Rules, 2017 (including blocked credits under Section 17 and recovery procedure under Rule 142).
Summary (Taxmann digest): The petitioner was denied Input Tax Credit on construction of immovable property intended for lease/license. Relying on Chief Commissioner of Central GST v. Safari Retreats (P.) Ltd., the Court noted that ITC ineligibility for construction applies where the building is for the person’s own use / as business premises — not where the constructed property is intended for leasing or licensing. Orders passed without considering this principle were set aside for fresh evaluation. The Court also addressed recovery notices and the need to follow statutory intimation / waiting periods before recovering from electronic cash or credit ledgers.
Digest republished with credit to Taxmann and the named counsel / bench. Read the full Taxmann report for the complete headnote.
Attribution
Original credit: Justice Senthilkumar Ramamoorthy (as reported by Taxmann); counsel: G. Dhana Madhri, Raghavan Ramabadran. This digest is published with acknowledgment to Taxmann (Taxmann.com). For the complete analysis, headnotes, and citations, please refer to the source.
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