Various Items for ITC Block Credits / Restricted ITC List

As you might be aware, the GST Department is denying ITC Credit on air conditioning, cooling, ventilation systems, etc. 
In my view, these are part and parcel of today’s needs and should be allowed, but……….

1. AAAR Gujarat
1.1 Wago Pvt. Ltd.
2024-VIL-23 :: (2024) 19 Centax 240
Appellant is not eligible to avail ITC on supply of air conditioning and cooling system and ventilation system since it ceases to be a plant and machinery and is blocked under Section 17(5)(c)
as the same is works contract services for construction of an immovable property.

1.2 Varachha Co-Op. Bank Ltd.
2023-VIL-37 :: (2024) 82 GSTL 77
Once installed in a building Central Air Conditioner becomes a part of building and therefore, it becomes an immovable property and
ceases to fall under category of plant and machinery; hence, ITC on supply of central air conditioner is not available in terms of Section 17(5).

Ref: CBEC’s order No. 58/1/2002-CX, dated 15-1-2002

2. Karnataka High Court
2.1 Hindustan Unilever Ltd.
(2016) 90 VST 236 :: (2016) 6 TMI 859

Karnataka VAT: All electrical and electronic goods including air conditioners, air coolers, telephones, fax machines etc., used would fall in the category of the goods for which
the input tax credit would be inadmissible for the purpose of input tax credit unless the goods are for resale or for manufacturing of any other goods for sale.
To put it in other words, if the goods specified in Fifth Schedule are purchased and put to use for the purpose of resale or for manufacture or for the process of other goods for sale, the input tax credit would be available.

3. CESTAT Chennai
3.1 Verizon Data Services I Pvt. Ltd.
(2014) 36 STR 846 :: (2014 ) 2 TMI 1044
Refund of CENVAT Credit – eligibility of input service credit taken on lift maintenance or air-conditioner, renting of cafeteria area, sale of foreign currency, AMC to air-conditioning
Held that:- denial of credit on air-conditioner, renting of cafeteria areas, AMC to air-conditioner are not sustainable.