Input Vat Credit

[Dwarakanath sriknatiah]

Is there any case laws with regard to inputvat credit on purchases on fertlisers used in  growing coffee and 

tea plantations? ours is a company which own coffee estates and grows coffee & tea on our estates. we are registered dealer under karnataka vat .

Dwarakanath

AI Summary

Input VAT credit denial for fertilizers used in plantation cultivation affirmed, limiting credit to non-agricultural input use.
Input VAT credit for fertilizers and similar inputs used in cultivation of coffee and tea on estate land is not available because such crops attached to land do not qualify as goods under the KVAT framework; a Karnataka High Court decision upholds that inputs used in growing/ cultivation of tea and coffee are not eligible for input tax credit, though taxpayers may seek Commissioner clarification or rely on statutory provisions for detailed conditions.