TMI Blog2018 (9) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... in the factory for manufacturing activity of the final product, the same would be covered and the Assessee would be entitled to Input Tax Credit with regard to tax paid on such electrical and electronic goods also. - The learned Advance Rulings Authority did not have the benefit of the aforesaid judgment of Division Bench of this Court which was delivered on 26.02.2016 just three days after the impugned order dated 23.02.2016 was passed by the aforesaid Authority. The said aforesaid view of the Division Bench is obviously binding on the said Authority and covers the controversy in hand. The equipments and items purchased by the Assessee namely Electrical Goods in question would be eligible for Input Tax Credit against the output tax liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of the KVAT Act, 2003 and is engaged in manufacturing of power transmission belts, conveyor belts, industrial belts, automotive belts, printer scanner belt etc. During the course of business, he has obtained new power connection for his plant from BESCOM and to set up the same, he has incurred expenditure on purchase of electrical purchases cum fittings installation items such as electrical transformer, HT cabling LT cabling, paneling work etc. The applicant is seeking clarification as to whether he is eligible for availing input tax credit on these purchases details are furnished as under: CETH 1) 3150 KVA transformer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ases are used for setting up his new BESCOM connection for power supply. In view of this, as restricted under the aforesaid provisions, the applicant is not entitled to avail input tax credit benefits on such purchases. 4. In view of the above, this authority hereby clarifies that the applicant is not entitled to claim input tax credit on the transactions of purchase of electrical goods viz., 3150 KVA transformer, HT cable, LT cable, UPS electrical and related civil / erection work. 4. Learned counsels at the bar have brought to our notice a decision rendered by the Division Bench of this Court (in which, one of us Hon ble Justice Mrs. S. Sujatha was a Member of the Bench) which dealt with a similar controversy in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing, packing or storing of goods for sale and those for use in computing, issuing tax invoice or sale bills, security and storing information. 30. If the aforesaid provisions of the Act and the items specified of goods are considered, 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 sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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