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2014 (12) TMI 1024 - HC - VAT and Sales TaxResale of the used motor vehicle - Claim of Exemption on sale of motor cars or other capital assets u/s 6(3) of the Delhi Value Added Tax Act, 2004 (DVAT) - motor cars to be treated as plant or not - Held that:- Section 9(9) of the DVAT Act is not applicable and appellant dealers were/are not entitled to input tax credit on motor vehicles. Once this is clear, we can appreciate the legislative mandate in granting exemption in respect of sale price paid in respect of capital goods provided the conditions mentioned section 6(3) of the DVAT Act are satisfied. - In the cases of the appellants, if these conditions are satisfied then the sale price received by the appellant dealers on sale of used motor vehicles would not be included in the turnover for it would be exempt from tax under Section 6(3) of the DVAT Act. Therefore, in view of the accepted and admitted facts, section 6(3) of DVAT Act would be applicable and the benefit cannot be denied. Scope of the plant under DVAT - Held that:- the word ‘plant’ has not been defined in the DVAT Act and in ordinary sense it includes whatever apparatus is used by a business man for carrying on his business but not his stock-in-trade which he buys or makes for sale - the word ‘plant’ or ‘machinery’ is not restricted only to mechanical processes or apparatus – the same has been decided by the Supreme Court in the case of Scientific Engineering House Pvt. Ltd. vs. CIT [1985 (11) TMI 1 - SUPREME Court] wherein it has been held that Plant will include any article or object fixed or movable, live or dead, used by a businessman for carrying on his business and it is not necessarily confined to an apparatus which is used for mechanical operations or processes or is employed in mechanical or industrial business. However, in order to qualify as plant, the article must have some degree of durability – exemption allowed - Decided in favour of appellant dealers.
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