https://www.taxtmi.com/caselaws?id=421161 Iron and steel used to construct buildings, sheds and other structures for expansion of a cement plant were not treated as capital goods because the VAT definition covered plant, machinery, equipment and allied items used in manufacture or processing, and the materials lacked a direct nexus with the manufacturing apparatus. Input tax credit under section 13(1)(b) was therefore unavailable, and the claimed exemption from entry tax also failed. The court found that construction materials used for buildings, without proof that they formed part of or directly supported plant and machinery, do not qualify for the tax benefit. en-us Mon, 18 Apr 2022 00:00:00 +0530 Tue, 19 Apr 2022 08:53:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=421161 Iron and steel used to construct buildings, sheds and other structures for expansion of a cement plant were not treated as capital goods because the VAT definition covered plant, machinery, equipment and allied items used in manufacture or processing, and the materials lacked a direct nexus with the manufacturing apparatus. Input tax credit under section 13(1)(b) was therefore unavailable, and the claimed exemption from entry tax also failed. The court found that construction materials used for buildings, without proof that they formed part of or directly supported plant and machinery, do not qualify for the tax benefit. Case-Laws VAT and Sales Tax Mon, 18 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=421161