https://www.taxtmi.com/caselaws?id=272062 Input tax credit could not be denied where castor seeds were purchased wholly for manufacture of castor oil and oil-based products, and the deoiled cake arose only as an unavoidable residue in that process. The partial-use proviso did not apply because no part of the purchase was diverted to any independent non-qualifying purpose. The fuel exclusion also did not apply because the seeds were not bought for fuel use, and the by-product could not be treated as a deliberate fuel purchase. On that basis, the disallowance of credit was unsustainable and the related penalty also could not stand. en-us Tue, 11 Aug 2015 00:00:00 +0530 Thu, 25 Feb 2016 09:52:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272062 Input tax credit could not be denied where castor seeds were purchased wholly for manufacture of castor oil and oil-based products, and the deoiled cake arose only as an unavoidable residue in that process. The partial-use proviso did not apply because no part of the purchase was diverted to any independent non-qualifying purpose. The fuel exclusion also did not apply because the seeds were not bought for fuel use, and the by-product could not be treated as a deliberate fuel purchase. On that basis, the disallowance of credit was unsustainable and the related penalty also could not stand. Case-Laws VAT and Sales Tax Tue, 11 Aug 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272062