Input Tax Credit - denial of credit capital goods of the unit -2...

Input Tax Credit - denial of credit capital goods of the unit -2 on the ground that credit cannot be availed before the commencement of commercial production as per Section 12(2) of the KVAT Act - the deduction of input tax has to be allowed on fulfillment of one of the conditions namely (1) after commencement of commercial production, (2) sale of taxable goods and (3) sale of any goods in the course of export out of the territory of India by the registered dealer. Rule 133 of the Rules provides for deduction of input tax subject to the conditions mentioned therein. It is pertinent to note that none of the conditions prescribed in Rule 133 provide that each unit of the petitioner has to be an independent unit to avail of the benefit of input tax. - Credit allowed - HC