AAR Clarifies Tie-in Pipeline Outside Factory Premises Ineligible for ITC under Section 17(5)(c): Not Covered as “Plant and Machinery”

The AAR has clarified that a "tie-in pipeline outside factory premises" is "ineligible for ITC under a specific section" as it is "not covered as plant and machinery." This ruling is a significant step towards a more transparent and less intrusive tax environment, is aimed at simplifying the tax structure and reducing the tax burden on essential goods. The move is expected to have a significant impact on various sectors. The ruling clarifies that a tax authority can't add a tax to a company's account without a valid reason.