Safari Retreat ITC – SC Dismissed Review Petition of Revenue

  • Blog|News|GST & Customs|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 24 May, 2025

Latest from Taxmann

GST ITC on building as plant

Case Details: Chief Commissioner of Central Goods and Service Tax vs. Safari Retreats (P.) Ltd. - [2025] 174 taxmann.com 894 (SC)

Judiciary and Counsel Details

  • Abhay S. Oka & Sanjay Karol, JJ.

Facts of the Case

Review petition dismissed against order of supreme court holding that if construction of a building was essential for carrying out activity of supplying services, building could be held to be a plant and then, it would be taken out of exception carved out by clause (d) of section 17(5) to sub-section (1) of section 16 and to decide whether a building is a ‘plant’ for purposes of clause (d) of section 17(5), functionality test will have to be applied in each case on facts

Supreme Court Held

The Supreme Court dismissed the Revenue’s review petition and upheld its earlier ruling that buildings like malls can be treated as ‘plant’ for GST input tax credit (ITC) purposes if they are essential to providing taxable services. The Court applied the ‘functionality test’ to assess whether such a building is essential for carrying out business activity. If so, it falls outside the restriction under Section 17(5)(d) of the CGST Act. Since there was no error in the original judgment, the review petition was rejected in favour of the assessee.

List of Cases Reviewed

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 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