TMI Blog2020 (8) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... g the input tax credit and which are used or intended to be used in the course or furtherance of business. - In this case, demo vehicles is used for furtherance of supply of such vehicles (such as demo car) as the prospective buyer is subjected to training about the features of the car and how to use them and is also used for driving including the test drives. Application allowed. - JHR/AAR/2020-21/01/07, - - - Dated:- 25-8-2020 - SRI PRADHUMAN BADRI PRASAD MEENA, AND SRI RAM CHANDRA PRASAD BARNWAL, MEMBER Present for the applicant : CA Soni Sarita, through P. S. Paul Co. (Authorized Representative) Note: Under Section 100 of the JGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall not be available in respect of the following namely:- ((a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely: - (A) further supply of such motor vehicles; or (B) transportation of passenger; or (C) imparting training on driving such motor vehicles; (aa) .................. (ab) ...................... Provided that the input tax credit in respect of such services shall be available - (i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause ((aa) are used for the purpose specified therein ; (ii) ........... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid; of Section 97(2) of the CGST/SGST Act, 2017. 5. Personal Hearing Proceedings: The Personal hearing of the applicant's Representatives as well as the concerned Jurisdictional Officer was conducted and concluded on 11/08/2020 and 13/08/2020 respectively. Findings Discussions: 6.1 The applicant sought Advance Ruling on one question i.e. Whether Payment of GST Liability on sale of vehicle, spares, labour can be done by utilising the Input GST on purchase of Demo Vehicle, other expenses like Repairs Maintenance, Insurance etc., relating to Demo Vehicle used for Demonstration and or Trial run purpose? 6.2 The applicant has relied on the order passed in the case of M /s Chowgule Industries Private Limited by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit. As the impugned purchase of demo car is in furtherance of business, the applicant is eligible for input tax credit. Furthermore, this activity does not come under the negative clause, as after a limited period of use as demo car, the vehicles are sold at the written down book value. The availability of input tax credit shall be subject to the provisions of Section 18(6) of the GST Act. In the case of supply of capital goods on which input tax credit has been taken, the registered person shall pay an amount equal to the input tax credit taken on the said capital goods reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods determined as value of taxable supply, whichever is hig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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