https://www.taxtmi.com/caselaws?id=445407 Where exempt goods emerge only as by-product or waste product in the manufacture of taxable goods, Explanation (iii) to Section 13 of the Uttar Pradesh VAT Act deems the purchased inputs to have been used in manufacturing taxable goods, preserving full input tax credit. The Court held that the proportional restriction in Section 13(3)(b) could not be applied to defeat that deeming fiction absent clear legislative language, and that the word "goods" in Section 13(1)(f) is not confined to taxable goods. It further held that the Karnataka-based decision in M.K. Agro Tech was inapplicable because the Uttar Pradesh scheme is materially different. Full input tax credit was therefore restored. en-us Mon, 06 Nov 2023 00:00:00 +0530 Tue, 14 Oct 2025 16:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445407 Where exempt goods emerge only as by-product or waste product in the manufacture of taxable goods, Explanation (iii) to Section 13 of the Uttar Pradesh VAT Act deems the purchased inputs to have been used in manufacturing taxable goods, preserving full input tax credit. The Court held that the proportional restriction in Section 13(3)(b) could not be applied to defeat that deeming fiction absent clear legislative language, and that the word "goods" in Section 13(1)(f) is not confined to taxable goods. It further held that the Karnataka-based decision in M.K. Agro Tech was inapplicable because the Uttar Pradesh scheme is materially different. Full input tax credit was therefore restored. Case-Laws VAT / Sales Tax Mon, 06 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445407