Input credit on lubricants - Karnataka VAT

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Suresh (Querist)
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15 November 2010 My client is into manufacture of aluminum utensils. He purchases aluminum scrap and also Furnace Oil and CSNL Oil for the purpose of manufacture.
The CSNL Oil is manufactured using cashew kernals and carries a tax of 5% while the furnace oil carries a tax of 13.5%

My question is can my client claim the credit on the furnace oil and CSNL Oil used while filing the monthly returns.
My reading of the Section 11, section 14 and Notification No.FD 507 CSL 2007, says that my client can full credit of CSNL Oil as it does not fall under the definition of lubricants and in case of furnace oil, it would be restricted to excess of local vat over cst rate.
Would like to know the opinion of the experts as I am required to file VAT 240 and am thinking of claiming input credit now for the entire year. Can I do so?

B R Ramesh

B R Ramesh (Expert)
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15 November 2010 Hi

according VAT act 2003 says that the commodity which is purchased to use directly or indirectly in the course trading or manufacturing the products.
for sale.

hence you can avail the credit.