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2014 (10) TMI 24 - KARNATAKA HIGH COURTInput tax rebate - Rebate in respect of consumables and capital goods used in the manufacture of PCBs - Whether the assessee is entitled to the benefit of input tax deduction credit in respect of consumables as well as capital goods used in the business of manufacturing and job work of PCB - Held that:- Insofar as application of section 17(3) of the Karnataka Value Added Tax Act 2003 is concerned, partial rebate is applicable only if the assessee puts to use the inputs purchased for any other purpose other than sale, manufacturing, processing, packing or storing of goods, in addition to use in the course of his business. Therefore, section 17(3) is applicable. Insofar as input tax deduction credit in respect of capital goods is concerned, it was contended slotted angles falls in entry No.5 of 5th schedule in respect of which no rebate is permissible. The argument is, what is purchased by the assessee is slotted angle framework which includes slotted angle + gusset plates + bolt & nuts. Slotted angle is different from slotted angle framework. Slotted angle framework is used by the assessee to keep his manufactured goods. It is in the nature of capital investment and therefore, he is entitled for the benefit of input tax rebate. As such, it does not fall within entry 5 of 5th schedule. Decided against Revenue.
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