SALES TAX SET OF ON PURCHASE OF GASES

[HITENDRA DAVE]

DEAR SIR WE ARE MANUFACTURE OF MACHINERY / INDUSTRIAL FILTERS CHAPTER 84, MY QUESTION IS WE HAVE PURCHASE GASES ( OXYGEN , ACETVLENE ETC ) USED FOR MANUFACTURING ACTIVITIES WE HAVE TAKEN CENVAT CREDIT , I WANT TO KNOW VAT ( SALES TAX-GUJARAT ) SET OF ALLOW OR NOT PL REPLY REGARDS HDAVE

[Surender Gupta]

Since the gases like oxygen and acetylene are used as input for the purpose of manufacturing activity of filters under chpater 84, credit shall be allowed under Gujarat Vat. 

AI Summary

Input tax credit on industrial gases allowed under Gujarat VAT enabling set-off for manufacturing inputs.
Gujarat VAT permits set-off for inputs demonstrably used in manufacturing; gases consumed as input materials in the production of filters qualify for input tax credit or set-off under Gujarat VAT, subject to the usual documentary and procedural compliance, notwithstanding that cenvat credit has been availed at the central level.