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2019 (11) TMI 1697 - HC - VAT and Sales TaxInput tax credit - 'Silos' erected by the assessee along with its connected machineries, which is made up of 'steel and cement' - civil structure, thereby making the expenditure incurred for its erection not eligible for input tax credit or not - S.R.O. 324/2005 promulgated under Section 2(x) of the Kerala Value Added Tax Act, 2003 - HELD THAT:- With respect to 'silos' the Tribunal had placed reliance on the decision in NOWRANGROY METALS PVT. LTD. VERSUS JOINT COMMISSIONER OF INCOME-TAX (ASSESSMENT). [2003 (6) TMI 21 - GAUHATI HIGH COURT] and various other rulings, rendered in the subject of Cenvat Credit. Based on those principle, it was held that, merely for the reason that some of the machinery or parts of 'silos' are made out of steel and cement, it will not fall within the exempted group of civil structure, not eligible for input tax credit. It further observed that, the 'silos' with various machineries form an integral part of it, need to be considered as plant and the 'steel and cement' used for construction of the 'silo' and the connected machineries, by itself will loss its identity as 'steel and cement', but it gets merged as a final plant with a specific purpose. The 'silos' cannot be identified as mere 'civil structure' falling within the negative list under S.R.O. 324/2005. The 'silos' which forms integral part of the machinery has the real characteristics of a plant or machinery, mentioned in the definition contained in Section 2(x) of the K.V.A.T. Act, which makes them to fall within the category 'capital goods' for which input tax credit can be allowed. The revision petitioner/state is not in a position to establish with any substantial credence that the view taken is in any manner illegal, erroneous or improper, warranting interference by this court in exercise of the revisional jurisdiction - Tax Revision Cases deserve no merit and is dismissed.
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