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CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 06 December 2007

Don't you think Mr. Sachin that, the debate is over? O.K., let me make a last try. My dear friend, please go through, section 18(3) and u will find that-
The taxable quantum of a dealer shall not include turnover from-
(a) sales of capital assets;
(b) sales made in the course of winding up the dealer’s activities; and
(c) sales made as part of the permanent diminution of the dealer’s activities.

Now, you will come to the deabte that what is "Capital Asset"? Capital asset is no where defined in DVAT Act. Capital Goods and Capital Assets are two different terms and used by the legislature in different section.
I am of the opinion that Furnitures & Fixtures falls under the ambit of "Capital Assets" and accordingly it is not part of taxable turnover. Hence your taxable turnover will be Nil and U will not be liable for VAT.
Still, if you are in disagreement, please put forward your points.
Thanks