https://www.taxtmi.com/caselaws?id=433239 Input tax credit under the U.P. VAT Act could not be denied merely because the dealer purchased an import licence, used it to import goods for its business, and did not resell the licence itself. The licence was treated as goods, tax had been paid on its purchase, and its use for importing chemicals was held to amount to adaptation for business use within the statutory concept of manufacture. An interpretation that denied credit in these circumstances would frustrate the object of value added taxation by preserving tax cascading. The assessee was therefore entitled to input tax credit, and the Revenue's denial of credit was unsustainable. en-us Mon, 16 Jan 2023 00:00:00 +0530 Fri, 21 Jun 2024 17:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=433239 Input tax credit under the U.P. VAT Act could not be denied merely because the dealer purchased an import licence, used it to import goods for its business, and did not resell the licence itself. The licence was treated as goods, tax had been paid on its purchase, and its use for importing chemicals was held to amount to adaptation for business use within the statutory concept of manufacture. An interpretation that denied credit in these circumstances would frustrate the object of value added taxation by preserving tax cascading. The assessee was therefore entitled to input tax credit, and the Revenue's denial of credit was unsustainable. Case-Laws VAT and Sales Tax Mon, 16 Jan 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=433239