Vat Input Credit on Safety oriented Goods

[Asked by Guest]

Dear Experts,

I have some ambiguity regarding to takes the Vat Input on Safety oriented items. Can we takes Vat input on Safety oriented Goods (like:- refilling of Fire Extinguisher, Safety cloths etc.) using in Pharmacy Company ?

Kindly suggest with your best judgment..

Thanks & Regard

Vikram

AI Summary

Input tax credit on safety equipment disputed; statutory manufacturing use test typically denies credit, though some judgments permit it.
Whether Input Tax Credit is recoverable on safety goods used in pharmaceuticals depends on statutory ITC eligibility: credit is allowed only for purchases for resale, use as input in manufacturing, packing materials, capital goods in manufacture, specified inter state sales, or prescribed agency transactions. Safety equipment and related consumables are treated as precautionary/ancillary rather than part of manufacturing and thus not eligible for ITC under this framework, though some judgments have permitted credit leading to conflicting practice.