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2008 (2) TMI 830 - HC - VAT and Sales TaxSpare parts and accessories - Held that:- Applying the "functional test" it would be clear that it would be clearly practically not possible to consider establishing a thermal power plant without a power house building and therefore, the Commissioner is clearly in error of law in coming to hold that a power house building is meant to be a place where the business activities were carried on. It would not be possible on the part of the petitioner to engage in the generation of electricity and distribution thereof and therefore, findings of the Commissioner without scrutiny of the law as laid down by the apex court, are also erroneous. Since the petitioner has now limited its claim under this item, i.e., H.S. meters, G.I. pipes, C.I. pipes, street-light fittings which are required for the purpose of construction of power house and control room required for operation and maintenance of the thermal power plant, to such an extent the claim of the petitioner is wholly justified as these items pass the scrutiny of the functional test. Petitioner is fully justified in claiming inclusion of items such as road materials like chips, tars, road rollers, concrete mixer and vibrator, manure, water treatment plant, filtration plants and associated materials, etc., canal materials like gates, stones, earth-moving and cutting machineries, etc.
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