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TMI Blog2018 (12) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... out of order dated 3.8.2009 passed by the Haryana Tax Tribunal, Chandigarh (for short, 'the Tribunal') in STA No. 183 of 2009-10 : "(i) Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in holding that Input Tax Credit is not admissible on purchase of Generator sets and its parts which are capital goods and used in the generation of electricity, which has been used in manufacturing of taxable goods for sale ?" 4. It is pleaded that the appellant is engaged in the business of manufacturing and trading of bath mats and carpets, etc. The goods manufactured by the appellant are primarily exported out of country. Due to shortage of power supply and to meet the deadline for supply of exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarification issued by the Government allowed the appeal of the assessee, vide order dated 5.8.2010. He further submitted that the aforesaid order was accepted by the department as no further proceedings were taken. Once the State had itself issued clarification on the issue, the appellant has wrongly been deprived of the relief in terms thereof. 6. On the other hand, learned counsel for the State could neither deny the instructions issued by the department nor order passed by the Tribunal in Suzuki Powertrain India Limited, Gurgaon' s case (supra), vide which relying upon the clarification issued by the State, appeal of the assessee was accepted granting benefit of input tax credit of the tax paid on purchase of diesel generator set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id on purchase thereof is available. The questions were answered in positive. Relevant part of the clarification is extracted below:- "No doubt when the Diesel Generating Set is being used as a standby generator to ensure uninterrupted power supply to the manufacturing plant the same is a part of plant and machinery. However when the same is being used in domestic sector, the same can not be termed as a part of plant and machinery. As to the decision of screening committee Haryana for deferment of sales tax, point under consideration in that case was of different nature and the same was whether, for the purpose of working out the cost of plant and machinery, for the purpose of deferment of sales tax, generating set forms a part of plant a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cases of dealers engaged in the business of generation and distribution of power i.e. sale of power. 10. Another fact which is not in dispute is that the aforesaid order passed by the Tribunal has attained finality as the same was in terms of the clarification issued by the State itself. 11. Considering the fact that the State itself issued clarification in the case of M/s Bhaskar Gensets Private Limited, Gurgaon, clarifying the legal issue in favour of the appellant and subsequent thereto even the Tribunal has accepted the appeal in the case of other assessee, we do not find any reason to decline the same relief to the appellant. Hence, the present appeals are allowed. The substantial question of law is answered in negative. The Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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