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
- Chief Commissioner of Central Goods and Service Tax v. Safari Retreats (P.) Ltd. [2024] 167 taxmann.com 73 (SC) (Para 2) affirmed.
The post Safari Retreat ITC – SC Dismissed Review Petition of Revenue appeared first on Taxmann Blog.