https://www.taxtmi.com/caselaws?id=469105 Input tax credit on capital goods under the Tamil Nadu VAT framework is separately governed by Section 19(3)(a) and Rule 10(4), while the restrictions in Section 19(4) and Section 19(5)(c) apply to goods used as inputs. On a harmonious reading of the Act and Rules, those restrictions do not extend to capital goods merely because the dealer makes inter-State sales or stock transfers. The scheme for capital goods has its own prescribed credit mechanism, and there is no one-to-one correlation between that credit and the nature of final sales to justify reversal under the invoked provisions. Accordingly, notices proposing such reversal were unsustainable. en-us Wed, 11 Sep 2024 00:00:00 +0530 Tue, 02 Jun 2026 21:23:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469105 Input tax credit on capital goods under the Tamil Nadu VAT framework is separately governed by Section 19(3)(a) and Rule 10(4), while the restrictions in Section 19(4) and Section 19(5)(c) apply to goods used as inputs. On a harmonious reading of the Act and Rules, those restrictions do not extend to capital goods merely because the dealer makes inter-State sales or stock transfers. The scheme for capital goods has its own prescribed credit mechanism, and there is no one-to-one correlation between that credit and the nature of final sales to justify reversal under the invoked provisions. Accordingly, notices proposing such reversal were unsustainable. Case-Laws VAT / Sales Tax Wed, 11 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469105