COMMERCIAL TAXES OFFICER vs A INFRASTRUCTURE LTD

The Supreme Court addressed the legality of disallowing Input Tax Credit (ITC) under Sections 18, 22, and 55(4) of the Rajasthan Value Added Tax Act, 2003. The Court held that the exemption of sales does not equate to the exemption of the manufacturing unit itself, thus allowing the assessee to claim ITC on raw materials used for manufacturing exempted goods. The judgment of the Rajasthan Tax Board was set aside, affirming the right of the assessee to avail ITC despite the final product being exempted from tax.