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2018 (9) TMI 724 - HC - VAT and Sales TaxInput tax Credit - capital goods - renewable energy device & spare parts, Boilers, Boiler components and materials for Erection of Boilers - denial of credit on the ground that renewable energy device & spare parts, Boilers, Boiler components and materials for Erection of Boilers are not involving in manufacturing process or packing or storing of the goods in the course of business and the goods do not fall under the category of “capital goods”? - Whether the renewable energy device & spare parts, Boilers, Boiler components and materials for Erection of Boilers are essential for manufacturing process or not? Held that:- Biomass Gasifier Unit is an manufacturing unit. That will certainly fall under the definition of apparatus or spare parts or accessories. In such circumstances, the goods used in the manufacturing process shall be taken as “capital goods” and the benefit under Section 19(3) shall be allowed. In the case of Thiagarajar Mills (P) Ltd., vs. Additional Commissioner (CT) (Revision petition), Ezhilagam, Chepauk, Chennai and others [2018 (8) TMI 1562 - MADRAS HIGH COURT], this Court has held that wind mill used for the purpose of generation of energy utilised in the manufacturing process will also fall under the category of “capital goods”. The renewable energy device & spare parts, Boilers, Boiler components and materials for Erection of Boilers are integral parts or integral apparatus or accessories in the manufacturing process and therefore, it should be construed as “capital goods”. Petition allowed.
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