Input tax credit requires independent statutory eligibility; purchasing DEPB licences does not satisfy conditions for credit.

Input tax credit for tax paid on purchasing Duty Entitlement Passbook licences is unavailable because eligibility depends on the specific conditions under Section 19, not merely on whether an item is generally goods. Credit is confined to purchases of taxable goods specified in the First Schedule and subject to qualifying purposes and limitations. DEPB licences are distinct from goods imported through their use, are not specified in that Schedule, and do not independently meet the statutory requirements for credit. The notes state that the prior Division Bench interpretation of this scheme was binding and that the issue was decided against the assessee.

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Issues: Whether input tax credit is available on tax paid for purchase of Duty Entitlement Passbook licences used to import plastic granules.

Analysis: Although a DEPB licence constitutes goods, entitlement to input tax credit is governed by the specific conditions in Section 19. Credit under Section 19(1) is confined to tax paid on purchase of taxable goods specified in the First Schedule, and the further provisions identify the qualifying purposes and limitations. DEPB licences are distinct from goods imported by using them, are not specified in the First Schedule, and do not independently satisfy the statutory requirements for credit. The prior Division Bench decision on the same question correctly construed the statutory scheme and was binding.

Conclusion: Input tax credit on purchase of DEPB licences is not available; the issue is decided against the assessee.

Ratio Decidendi: A good may fall within the general definition of goods, but input tax credit is available only where the purchase independently meets the specific statutory conditions governing taxable goods and qualifying transactions.

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