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2018 (8) TMI 1562 - HC - VAT and Sales TaxInput tax credit - purchase of wind mill - Section 19(3) of the TNVAT Act, 2006 - whether the power generated is utilised for the manufacturing process by the concerned dealer and if it is solely for the purpose of production of yarn in a textile mill, then it should be considered as capital goods? - Held that:- The petitioner has claimed Input Tax Credit to the tune of ₹ 6, 26, 000/- in the year 2007-08 for the capital goods purchased and used by him during the year 2006-07. Since the capital goods, namely, wind mill was purchased and used for the manufacturing of cotton yarn, which is taxable goods, he is entitled to avail Input Tax Credit as per Section 19(3) of the TNVAT Act - The rejection of the claim on the ground that the wind mill does not form an integral part of the industrial premises, in which, the manufacturing is made and that the wind mill is situated at a far-off place, cannot be treated as capital goods in the manufacturing of cotton yarn, is not sustainable. Whether the power generated by the petitioner by erecting the wind mill was completely utilised for the manufacturing process, without there being any commercial exploitation, can be considered as capital goods or not? - Held that:- By ample evidence, the petitioner had proved that he has entered into an agreement with the Power Grid Corporation for transmitting the power and getting supply and then, the relevant column proved that it is not distributed to anybody else on commercial basis. In that event, when the erection of wind mill for the purpose of generating power in the manufacturing process shall be construed as capital goods, Input Tax Credit shall be made available to the assessee as per Section 19(3) of the TNVAT Act. The petitioner is entitled to refund of the amount if paid pursuant to the rejection of his claim by the authorities - petition allowed.
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