ITC ON GOODS USED IN FOUNDATION OF CAPITAL GOODS

Recently we came across two divergent decision of H'on. GVAT Tribunal on ITC on goods used in construction of foundation/structure, on which capital goods was mounted. The definition of capital goods in the GVAT act read as: “capital goods” means plant and machinery (other than second hand plant and machinery) meant for use in manufacture of taxable goods and accounted as capital assets in the books of accounts;”. The above definition clearly suggests that capital goods should be plant and machinery first. Hence the act made a difference between the capital goods and capital assets. It also may be seen the different taxation acts used these words in accordance with the nature of act. Hence, the ITC on the goods used in construction of such fondation/ structure isn't admissable. Kindly share the practice prevalant in other states