2018 (10) TMI 514

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....hicle is an indispensable tool for promotion of sales by providing trial run to customers. It is a business requirement that motor car dealer shall compulsorily acquire the demonstration vehicles from principal supplier. These purchases are capitalized in the books of accounts excluding tax components. These demo cars are used for demonstration purpose for the prospective customer and after a spec....

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....erson shall be entitled to take credit of input tax charged on any supply of goods or services or both which are used or intended to be used in the course or furtherance of his business. The petitioner purchases the vehicles from the supplier against tax invoices, after paying taxes. The demo cars purchased from supplier are being capitalized. The capital goods which are used in the course or fur....

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....book value, applicable GST is satisfied at that point of time. GST Act does not prescribe the time within which further supply is to be effected. So much so, the embargo under Section 17(5) will not apply and the applicant is entitled for input tax credit as against demo cars. The issue was examined in detail. The suppliers of vehicles supplied demo cars against tax invoices. The demo car is an i....