Input tax credit on chassis for iron ore transport was disallowed because the purchase was not a qualifying statutory use.

Input tax credit and refund were held inadmissible on a chassis purchased solely to build a vehicle body for transporting iron ore. The statutory definition of "input" under Section 2(19) of the Karnataka Value Added Tax Act, 2003 requires purchase for resale, manufacture, processing, packing, storing, or another qualifying business purpose; a purchase used only for transportation did not satisfy that test. The claim was also treated as barred by Section 11(3) read with the Fifth Schedule. Accordingly, the refund claim on the chassis was disallowed.

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Issues: Whether input tax credit/refund was admissible on the purchase of chassis used for transporting iron ore, and whether such claim was barred under Section 11(3) read with the Fifth Schedule of the Karnataka Value Added Tax Act, 2003.

Analysis: The petitioner purchased chassis to build a vehicle body for transporting iron ore from the place of extraction or processing to the port. On the admitted facts, the chassis was not purchased for resale, manufacture, processing, packing, storing, or any other qualifying business use contemplated by the definition of input under Section 2(19). The authorities therefore held that the purchase was only for transportation and did not satisfy the statutory requirements for input tax credit or refund.

Conclusion: The claim for refund of input tax on the chassis was not allowable, and the disallowance was upheld.

Ratio Decidendi: Input tax credit is not admissible on a chassis purchased merely for transportation where the article is not used for manufacture, processing, or any other qualifying statutory purpose.

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