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TMI Blog2011 (6) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... is nothing but outright sale camouflaging the consideration as deposit, which will be adjusted in four equal instalments in the course of four years. We, therefore, reject this contention raised by the petitioner and uphold the order of the Tribunal. These revision cases are allowed in part by directing the assessing officer to verify the payments received, outright and or deferred by way of deposit or otherwise in respect of the supply of deep freezers by the petitioner, and grant input tax credit subject to the second proviso to section 11(3) of the Act - O.T. Revn. Nos. 39, O.T. Revn. Nos. 40 of 2011 - - - Dated:- 20-6-2011 - RAMACHANDRAN NAIR C.N. AND BHABANI PRASAD RAY JJ. C.K. Thanu Pillai and K.P. Joy for the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner to the distributors is sale of capital goods, which is not entitled to depreciation under section 11(5)(o) of the Act. It is against these orders, the petitioner has come up with these revisions. The learned counsel for the petitioner relied on copy of the standard agreement executed between the petitioner and one of the distributors and contended that ownership of deep freezers delivered to the distributors is retained by the petitioner and as and when distribution agreement is terminated, the petitioner will collect back the deep freezers. However it is provided in the agreement and it is conceded in the court that the petitioner will collect charges for the wear and tear, which is 25 per cent of the value at flat rate leading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, and so much so, it is capital goods for the distributors; and when the petitioner is engaged in purchase and sale of the same to their distributors the petitioner was engaged only in trading of the said goods. So much so, the goods are not capital goods at the hands of the petitioner, who has purchased and sold the same to the distributors. Besides this, what we notice is that capital goods in respect of which input tax credit is not available are such goods notified under section 2(x) of the Act by virtue of section 11(5)(o) of the Act. Notification SRO No. 224/2005 issued under section 2(x) of the Act covering nine items does not include deep freezers as an item in the negative list for the purpose of disallowing input tax credit. So m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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