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2021 (5) TMI 668 - ANDHRA PRADESH HIGH COURTInput tax credit - sale or not - user of spare parts and lubricants during the course of undertaking repair works to the two wheeler vehicles by the petitioner in his service centre - HELD THAT:- Section 2(10) defines the term “Dealer” which means a person who carries on the business of buying, selling, supplying or distributing goods or delivering goods on hire purchase or on any system of payment by instalments, or carries on or executes any works contract involving supply or use of material directly or otherwise, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration - In the instant case, since the petitioner is selling two wheeler vehicles, spare parts and lubricants and also undertakes the works contract of servicing and repair of the two wheeler vehicles, he comes within the definition of “Dealer”. The main thrust of the argument of the petitioner is that since the said transaction is an outright sale, 100% ITC has to be admitted. This argument of the petitioner cannot be appreciated for the reason that even if the user of spare parts and lubricants in the works contract amounts to sale, still the statute restricts the ITC to 75%. Petition dismissed.
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