Input tax credit on Rice Husk and diesel

[S.C. WADHWA]

Dear Expert,

We are manufacturer registered with Haryana Vat Tax.
To get the goods manufactured, we used steamed
generated through boiler by using Rice Husk as fuel.
And diesel used in generator for generating electricity
to run the machines.
Now my query is whether we are eligibal to get input
tax credit on the consumption of Rice Husk and diesel
which purchases are being made duly Vat Tax paid.
Please give your expert opinion alongwith any circular/
notification etc. REGARDS, WADHWA

[Ganeshan Kalyani]

On consumption of rice husk the credit is admissible. credit is not allowed on diesel.

AI Summary

Input tax credit: admissible on rice husk used as boiler fuel, but not available for diesel used in generators. Input tax credit is available for rice husk purchased and consumed as boiler fuel in the manufacturing process where VAT has been paid, but credit is not available for diesel used in generators to run machinery.