STATE OF GUJARAT vs RELIANCE INDUSTRIES LTD.,

The Supreme Court addressed the issue of tax credit under Section 11 of the Gujarat Value Added Tax Act, 2003, specifically concerning the eligibility of the assessee to claim VAT credit on inputs used for manufacturing goods sold both within and outside the State. The Court held that the assessee is entitled to claim tax credit for VAT paid on inputs used in the manufacturing process, affirming the provisions of the VAT Act that allow such claims for goods intended for sale or branch transfer. The judgment clarified the interpretation of tax credit eligibility, reinforcing the principle that input tax credits are integral to the VAT system.