https://www.taxtmi.com/caselaws?id=366090 A windmill installed outside the factory still qualified as capital goods for input tax credit where the electricity generated was used exclusively in the assessee's own manufacture of taxable goods and was neither commercially sold nor diverted. The Madras HC held that the relevant test was the captive use of the power in the manufacturing process, not the windmill's physical distance from the industrial premises. Applying Section 19(3) of the Tamil Nadu VAT Act and Rule 10(4), the Court treated the windmill as capital goods used in manufacture and held that rejection of input tax credit was unsustainable. en-us Tue, 24 Apr 2018 00:00:00 +0530 Thu, 30 Aug 2018 06:03:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=366090 A windmill installed outside the factory still qualified as capital goods for input tax credit where the electricity generated was used exclusively in the assessee's own manufacture of taxable goods and was neither commercially sold nor diverted. The Madras HC held that the relevant test was the captive use of the power in the manufacturing process, not the windmill's physical distance from the industrial premises. Applying Section 19(3) of the Tamil Nadu VAT Act and Rule 10(4), the Court treated the windmill as capital goods used in manufacture and held that rejection of input tax credit was unsustainable. Case-Laws VAT and Sales Tax Tue, 24 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=366090