https://www.taxtmi.com/caselaws?id=419449 The AAAR, Haryana denied input tax credit on BMW vehicles received under stock transfer arrangements. The appellant claimed ITC on IGST and compensation cess paid on cars used for business activities before supply to dealers. The Authority held that vehicles used for demonstration purposes lose their character as new motor vehicles and become akin to second-hand goods, making them ineligible for ITC under Section 17(5). The ruling emphasized that allowing such credit would make all motor vehicles across industries eligible for ITC, contrary to Parliament's intent to restrict this benefit primarily to car dealers. en-us Mon, 28 Jun 2021 00:00:00 +0530 Wed, 02 Apr 2025 12:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=419449 The AAAR, Haryana denied input tax credit on BMW vehicles received under stock transfer arrangements. The appellant claimed ITC on IGST and compensation cess paid on cars used for business activities before supply to dealers. The Authority held that vehicles used for demonstration purposes lose their character as new motor vehicles and become akin to second-hand goods, making them ineligible for ITC under Section 17(5). The ruling emphasized that allowing such credit would make all motor vehicles across industries eligible for ITC, contrary to Parliament's intent to restrict this benefit primarily to car dealers. Case-Laws GST Mon, 28 Jun 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=419449