Fire-Fighting and Public Health Systems in Factory Are Immovable, ITC Blocked | AAR

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 5 September, 2025

Latest from Taxmann

ITC on Fire-Fighting and Public Health Systems AAR

Case Details: Shibaura Machine India (P.) Ltd., In re - [2025] 177 taxmann.com 687 (AAR - TAMILNADU)

Judiciary and Counsel Details

  • C. Thiyagarajan & B. Suseel Kumar, Member

Facts of the Case

The applicant, engaged in the business of manufacturing injection moulding machinery and accessories, had undertaken expansion of its business operations by constructing a new factory adjacent to its existing facility. For this purpose, it entered into a separate contract with a supplier for supply, installation, testing, and commissioning of industrial works in the new premises, which included fire pump room equipment, hydrant system, automatic sprinkler system, fire extinguishers, signages, addressable fire detection and alarm system, public address system, panel protection room, pipelines for waste clearance, sanitary fixtures, sewage system, water supply system, rain water harvesting system, and associated pumps. The applicant submitted that these items constituted plant and machinery, eligible for input tax credit under GST, and sought an advance ruling on the availability of credit in light of Sections 17(5)(c) and 17(5)(d) of the CGST Act and the Tamil Nadu GST Act. The matter was accordingly placed before the AAR Tamil Nadu.

AAR Held

The AAR, Tamil Nadu held that the fire-fighting and public health systems installed in the factory building were fixed to the structure and became an integral part of the immovable property. It observed that such systems, once installed, lost the character of movable goods and ceased to qualify as plant and machinery capable of being used directly in the course of outward supply of goods or services. The authority further held that the supply and installation of these systems amounted to construction of immovable property and that taxes paid thereon were specifically blocked under Sections 17(5)(c) and 17(5)(d) of the CGST Act. Consequently, the applicant was not entitled to avail input tax credit on the impugned goods and services.

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann editorial team

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied