DCW LIMITED Vs. APPELLATE DEPUTY COMMISSIONER
LAWS(MAD)-2019-1-539
HIGH COURT OF MADRAS
Decided on January 31,2019

DCW LIMITED Appellant
VERSUS
APPELLATE DEPUTY COMMISSIONER Respondents

JUDGEMENT

- (1.) The orders impugned in these writ petitions are questioned on a number of grounds. The learned Senior Counsel appearing for the writ petitioners reiterated the contentions set out in the affidavits filed in support of these petitions.
(2.) Heard the learned Additional Advocate General appearing for the respondents who also argued extensively for sustaining the orders impugned in this writ petition. One of the core issue that arises for consideration in these writ petitions is whether VAT paid on inputs used in the captive power plant qualified for Input Tax Credit because the final product namely energy is an exempted commodity.
(3.) The respondents had taken the view that they would not so qualify for Input Tax Credit. The order passed by the appellate authority was on 01.07.2015. But on 22.07.2015, in response to a query raised by the Chemnplast Sanmar Limited, Chennai, the Government had clarified the issue in its letter No. Acts Cell 5/21619/15 dated 22.07.2015. The clarification reads as under: "(i) VAT paid on inputs used in captive power plant qualifies for input tax credit to the extent the power and steam is used for manufacture of final products. (ii) VAT paid on capital goods used in their captive power plant (power generated to be used only in this dealer's own manufacturing plant) is eligible for input tax credit under Section 19(3) of TNVAT Act, 2006 read with rule 10(4) of TNVAT Rules, 2007." ;


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