Inward supply of motor vehicles used for demonstration purposes in the course of business of supplying...

Inward supply of motor vehicles used for demonstration purposes in the course of business of supplying motor vehicles cannot be availed as input tax credit on capital goods. Motor vehicles supplied for demo purpose are treated as a different category compared to those supplied for sales, and are capitalized by the dealership as per customary business practices. The audited books of accounts reflect the true and fair position of the business. According to Section 17(5)(a)(A), input tax credit on motor vehicles is available only when they are further supplied. Since the appellant is not holding the goods for further supply, the exception u/s 17(5)(a)(A) does not apply, and input tax credit on motor vehicles used for demo purposes cannot be al..... .....

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