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2015 (3) TMI 478 - HC - VAT and Sales TaxBenefit of input tax rebate - whether Xerox machines, office stationary, air conditioners, building equipments, security system for building qualify for the benefit of input tax rebate. - Held that:- In view of clause (b) of sub-Section (6) of Section 2 of the KVAT Act, any transaction in connection with or incidental or ancillary to such trade, commerce, manufacture adventure or concerned falls within the definition of 'business' and as such the machinery is used in the course of business the assessee is entitled to the input tax rebate. The appellate Tribunal has not looked into this statutory provision before arriving by such conclusion and therefore, it is not sustainable. Similarly, the findings of the Tribunal that there is no requirement that a particular temperature alone is essential for software development, the air conditioner makes the atmosphere good and increases the comforts, but they are not directly connected with the software activity, are concerned, in view of the reasons set out above, while considering the meaning of the word 'business', it is not necessary that there should be a direct nexus between the machinery and the activity that is carried on. Any transaction in connection with or incidental or ancillary to such trade, commerce, manufacture adventure or concern, is sufficient to bring it within the word 'business' and therefore, when Air conditioner is used by the assessee in the course of his business, it falls within the definition of 'capital goods'. In view of Section 12 of the Act, the assessee is entitled to benefit of input tax rebate. For the very same reasons, the security systems for building where business is carried on is also eligible for tax rebate. In that view of the matter, the order of the Tribunal to that extent requires to be interfered with and accordingly, the said findings are set aside. - assessee is entitled to input tax rebate in respect of work stations as they do not fall under the definition of 'wood furniture'. - assessee is entitled to the benefit of input tax rebate on xerox machines, air conditioners and security systems for building - Decided in favour of assessee.
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