Reversal of VAT Input tax credit

[saket s]

Pls suggest any judgments on reversal of VAT Input tax credit for free replacement of spare parts under warranty scheme. Department is asking us to reverse VAT ITC on the same.

Thanks

Saket

[DR.MARIAPPAN GOVINDARAJAN]

In my view the action of the department is correct.

AI Summary

Reversal of VAT input tax credit required for free replacement of spare parts under warranty; department's view affirmed. Reversal of VAT input tax credit for free replacement of spare parts under warranty is the central issue. The department demanded reversal of claimed input tax credit where spare parts are supplied free under a warranty scheme, and the recorded advisory response concurs that reversal is appropriate.