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TMI Blog2022 (4) TMI 827X X X X Extracts X X X X X X X X Extracts X X X X ..... buildings, sheds, etc. The revisionist claimed the iron steel, purchased and used for construction of various buildings for expansion of its unit, as capital goods so that benefit of input tax credit can be granted to it - Bare perusal of section 2(f) of the VAT Act it has been clearly stated that capital goods means any plant, machine, machinery, equipment, apparatus, tool, appliance or electrical installation used for manufacture or processing of any goods for sale by the dealer. Further, perusal of section 13(1)(b) of the VAT Act would reveal that the dealer shall be entitled for claim of ITC only in respect of taxable goods purchased. On close scrutiny of the submissions of the learned counsel for the revisionist and the certificate bro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions of law have been framed:- (i) Whether on the facts and in the circumstances of the case, the Tribunal is legally justified in not allowing the claim of exemption of Entry Tax on Iron & Steel (MS Angle, MS Channel, MS Plate, MS Beam, etc.) used in expansion of Cent Plan on the ground that it is not a capital goods? (ii) Whether, on the facts and in the circumstances of the case, the imported MS Angle, MS Channel, MS Plate, MS Beam, etc. used by the applicant in expansion of Cement Plant is exempt from levy of Entry Tax being capital goods and exempt under the Entry Tax Act, as well as under Notification No. 927 dated 18.02.2003? (iii) Whether inspite of holding that 'MS Angle, MS Channel, MS Plate, MS Beam, etc.' can be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttedly, the revisionist is manufacturer of cement. For expansion of its unit/cement plant, the revisionist purchased iron & steel and used the same for construction of various buildings, sheds, etc. The revisionist claimed the iron & steel, purchased and used for construction of various buildings for expansion of its unit, as "capital goods" so that benefit of input tax credit can be granted to it. 8. For the purposes of deciding the issue, as to whether iron & steel used in the constructions of various buildings for expansion of the unit can be said to be "capital goods" or not, which was not directly connected with the plant & machinery or accessories of such plant & machinery, sections 2(f) and 13(1)(b) of the VAT Act would be relevant, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lauses and holding valid registration certificate under this Act, shall, in respect of taxable goods purchased from within the State and mentioned in such clauses, subject to conditions given therein and such other conditions and restrictions as may be prescribed, be allowed credit of an amount, as input tax credit, to the extent provided by or under the relevant clause: (a) ….. (b) Input tax credit of full amount of input tax shall be allowed to every dealer, liable to pay tax, in respect of capital goods purchased on or after the date on which dealer becomes liable for payment of tax under this Act, if such goods are to be used in,- (i) manufacture of any taxable goods except non-vat goods and where such manufactured goods is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance thereof." 9. Bare perusal of section 2(f) of the VAT Act it has been clearly stated that "capital goods" means any plant, machine, machinery, equipment, apparatus, tool, appliance or electrical installation used for manufacture or processing of any goods for sale by the dealer. Further, perusal of section 13(1)(b) of the VAT Act would reveal that the dealer shall be entitled for claim of ITC only in respect of taxable goods purchased. 10. Now, in view of the afore-quoted provisions of the VAT Act, the claim of the dealer for "capital goods" is to be examined. 11. The argument learned counsel for the revisionist was that the iron & steel, used for expansion of its unit were used for construction of various buildings, should be treate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITR 86 (SC) and judgement of the Gujarat High Court in State of Gujarat Vs. Sales India Corporation reported in 2017 NTN (63) 169, but on close scrutiny of the aforesaid judgements, the same are not applicable in the facts & circumstances of the present case, as the revisionist has failed to bring on record any material to show as to how the iron & steel, so purchased, have been used which is directly connected with plant & machinery for claiming the same as "capital goods". 13. In absence of any material having been brought on record, the claim "capital goods" by the revisionist has rightly been rejected by the authorities below. No case is made out for interference by this Court with the impugned order. 14. In view of the aforesaid fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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