Capital goods used in power generation eligible for input tax credit rules Kerala High Court [Read Order]

Top Stories Capital goods used in power generation eligible for input tax credit rules Kerala High Court [Read Order] Kerala High Court set aside a revenue order denying input tax credit to Kerala Mineral and Metals Ltd by the state GST department By Amal Michael – On December 14, 2023 12:01 pm – 2 mins read The Kerala High Court in a single bench ruling granted the input tax credit claims made by the assessee.

The assessee had made the claim with regard to purchase of capital goods which would be used for electricity production. This claim had been denied by the GST department. The petitioner, Kerala Mineral and Metals Ltd(a Government of Kerala undertaking) had approached the court contesting the decision of the GST department to deny the input credit claim.

The Court instructed the assessing authority to adjudicate on the petitioner’s application in Form No.25, ensuring compliance with Rule 13(3) of the Kerala Value Added Tax Rules. The assessee was represented by advocates Anil D. Nair, Telma Raju, and Aaditya Nair. The GST department was represented by Smt.Jasmine M.M(Government pleader).

Justice Dinesh Kumar Singh held that the questions of whether the order is correct or not and whether the petitioner is entitled to input tax credit for the assessment years 2014-15 to 2016-17 or not, can be looked into by the appellate authority, while examining the impugned order and dismissed the petition with liberty to the petitioner to approach the appellate authority.

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