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2016 (12) TMI 696 - GUJARAT HIGH COURTITC - ‘Product Information Literature’ - ‘Laboratory Stores’ - Whether on the facts and in the circumstances of the case, Gujarat Value Added Tax Tribunal was justified in law in holding that ‘Product Information Literature’ and ‘Laboratory Stores’ purchased by the appellant was not eligible for Inputs Tax Credit under the provisions of Section 11(3)(a)(vi) of the Gujarat Value Added Tax Act, 2003? - Held that: - the “laboratory stores” used in the laboratory unit for testing at pre-manufacturing and post-manufacturing stage are required to be held as “consumable stores” and therefore, are required to be held as “raw materials used in the manufacture”, as the requirement of testing is mandatory under Rule 22.4 of the Rules, 1945 and unless and until such a test is conducted and/or carried out the final product is not commercially saleable/marketable. Under the circumstances, the assessee shall be entitled to the Input Tax Credit under Section 11(3)(a)(vi) of the VAT Act on the “laboratory stores” such as glassware/glass tube, raw material, chemical etc. used in the laboratory for testing at pre-manufacturing and post-manufacturing stage. The question is, therefore, answered in favour of the assessee and against the Revenue. ‘Product Information Literature’ - Held that: - The ‘Product Information Literature” which is mandatorily required under the provisions of the Drugs and Cosmetics Act, 1945 and unless and until such information mentioned in the “Production Information Literature” is provided, the final product/drug cannot be sold. For the reasons stated above, it is to be held consumable stores and therefore, raw material as defined under Section 2(19) of the VAT Act and therefore, being the raw material used in manufacture of taxable goods i.e. in the present case the drugs, the assessee shall be entitled to the Input Tax Credit on such “Product Information Literature”. It is answered in favour of the assessee and against the Revenue and it is held that on such “Product Information Literature” giving the information as required under the provisions of the Drugs and Cosmetics Act, 1945 and to be pasted on the box containing the drug, the assessee is entitled to the Input Tax Credit. Appeal allowed - decided in favor of appellant-assessee.
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