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2014 (5) TMI 98 - RAJASTHAN HIGH COURTDisallowance of Input Tax Credit - charging of interest u/s 22, 18 and 55(4) of the Rajasthan Value Added Tax, 2003 – Held that:- U/s 18 of the Act ITC is allowed for purchase of any taxable goods made within the State from a registered dealer for the purpose of being used as raw material except those as may be notified by the State Government in the manufacture of goods, for sale within the State or in the course of inter-state trade or commerce – u/s 18(1)(e) only the 'exempted goods', have been taken out of the purview of ITC and not person or class of persons or sale or purchases for promoting Special Economic Zones or exports u/s 8(3), (3A) or (4), the use of words 'other than exempted goods', therefore, necessarily means the goods specified in the Schedule-I under Section 8(1) of the Act. The intention of the legislature in incorporating Section 18 (1)(e) of the Act is apparently clear, which takes away the exempted goods from the purview of ITC and not the person or class of persons exempt u/s 8(3) as nothing prevented the legislature from including besides exempted goods, exempted persons also under Section 18(1)(e) of the Act - goods and dealers are treated separately u/s 5 of the Act - in view of express language of Section 18(1)(e) of the Act, Notifications S.O.371, S.O.372 and S.O.377, the petitioner is entitled to avail ITC and the authorities below were not justified in denying Input Tax Credit to the petitioner -Revision petitions are allowed - Decided in favour of assessee.
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