Delhi HC says ITC must follow Safari Retreats

The Supreme Court has already upheld the constitutional validity of Section 17(5)(c) and (d), but also held that the functionality test must be applied to determine whether a structure qualifies as a plant. 

Delhi High Court has now clarified that the earlier CBIC circular must be read in accordance with that ruling. Whether the particular structure qualifies as a plant remains a factual question for the adjudicating authority.