Consider the following statements regarding the Supreme Court's recent judgment on Input Tax Credit (ITC) eligibility in construction:
Statement I: The Supreme Court established the ‘functionality’ and ‘essentially’ tests as criteria for determining Input Tax Credit (ITC) eligibility in the construction of buildings, emphasizing the nature of the building's role in providing services.
Statement II: The Court ruled that a building used primarily for providing services such as renting or leasing may qualify as a plant, thereby becoming eligible for ITC.
Which of the following is correct with respect to the above statements?
1
Both Statement I and Statement II are correct, and Statement II explains Statement I.
2
Both Statement I and Statement II are correct, but Statement II does not explain Statement I.
3
Statement I is correct, but Statement II is incorrect.
4
Statement I is incorrect, but Statement II is correct.