VAT Input Tax credit on ETP

[Ganeshan Kalyani]

Dear Expert,

Kindly help with citation whether VAT Input Tax credit of machinery in Effluent Treatment Plant is eligible for taking set off against VAT output. Also, please clear whether the Input credit on various chemicals, spares are used for ETP machinery, whether ITC is allowed for the same.

Kindly give your valuable comment.

regards,

ganeshan

AI Summary

CENVAT credit eligibility: ETP machinery and inputs treated as part of manufacture, supporting VAT input set off by analogy.
Input tax credit on machinery, chemicals and spares used in an Effluent Treatment Plant may be claimed by analogy to CENVAT precedents which hold that effluent treatment is an integral part of manufacture and that apparatus and inputs used in an ETP are "used in the manufacture" and therefore eligible for credit; a High Court decision similarly treats chemicals for ETP as inputs for credit. These CENVAT holdings are suggested as usable authority in VAT matters to seek set off for VAT input tax credit on ETP related items.