ITC on inputs used in manufacturing expired cakes & pastries is not admissible and required to be reversed.
Authority for Advance Ruling —– Reversal of Input Tax Credit expired cakes & pastries --– The applicant is engaged in the business of manufacturing & distribution of cakes & pastries items. The applicant used to send cakes & pastries to the distributors to keep them in display to fascinate consumer. The cakes & pastries are of perishable nature and cannot be preserved for longer period and on regular interval all cakes & pastries kept in display have to be compulsorily replaced after expiry of said bakery item. The applicant sought the Advance Ruling as to whether or not there is requirement for reversal of input tax credit on goods used as raw material in manufacturing of expired cakes & pastries that were kept in display for use in course or furtherance of business.
Held that:- The Hon’ble Authority for Advance Ruling subject matter is covered under Section 17(5) (h) of Act and thereby ITC on inputs used in manufacturing expired cakes & pastries is not admissible and required to be reversed.
ITC on inputs used in manufacturing expired cakes & pastries is not admissible and required to be reversed.
Authority for Advance Ruling —– Reversal of Input Tax Credit expired cakes & pastries --– The applicant is engaged in the business of manufacturing & distribution of cakes & pastries items. The applicant used to send cakes & pastries to the distributors to keep them in display to fascinate consumer. The cakes & pastries are of perishable nature and cannot be preserved for longer period and on regular interval all cakes & pastries kept in display have to be compulsorily replaced after expiry of said bakery item. The applicant sought the Advance Ruling as to whether or not there is requirement for reversal of input tax credit on goods used as raw material in manufacturing of expired cakes & pastries that were kept in display for use in course or furtherance of business.
Held that:- The Hon’ble Authority for Advance Ruling subject matter is covered under Section 17(5) (h) of Act and thereby ITC on inputs used in manufacturing expired cakes & pastries is not admissible and required to be reversed.