01 December 2011
Coal used by power generating unit is fuel or is raw material? Is there is any case law related to this matter? Under Maharashtra VAT Act treatment for fuel and raw material purchases is different. Experts, Kindly reply.
01 December 2011
Mr. Author, Fuel is generally motor spirits such as deisel,petrol or aviation fuel only. Here coal,and specially used for producing electricity should be considered as raw material only. The same principle is adopted in many VAT Acts also. Coal is consumed in the process of producing electricity,the main product, hence it is a raw material in this case. MJK