Allowability of input tax credit on diesel

[S.C. WADHWA]

Dear Sir,

We are manufacturer in food items in Haryana and paying vat tax on the purchase of diesel. Pls advise whether we are ellible to take input tax credit of vat tax paid on the purcchase of diesel which used in generator for the generation of elctricity which used for running the plant. If yes from which date.

Regards,

WADHWA

AI Summary

Input tax credit on diesel disallowed under fuel exclusion provisions, preventing ITC for diesel used to generate electricity.
Input tax credit on diesel used as fuel for generation of electricity for manufacturing is disallowed. The central excise input definition excludes high speed diesel and petrol as inputs, and HVAT Schedule E treats petroleum products used as fuel as goods for which input tax shall be nil, preventing ITC on diesel used as fuel.