Powers of Government to amend Schedule 20

16

(e) Tax paid in excess of 4% on petroleum products used as fuel (other than petrol, Aviation Turbine Fuel and diesel and other fuels when used as fuel in production of taxable goods or captive power is to be entitled for input credit. However, no input tax credit will be given if petroleum product is used as fuel in motor vehicle. (f) Input tax credit shall be allowed during the return period. Refund of excess tax credit shall be allowed only after the end of the financial year. (2) Partial input tax credit is to be made where inputs are used in the following circumstances :- (a) Where sale consists of both taxable and exempted goods. (b) Where sale consists of sale and dispatch in the form of consignment and stock transfer to other states. (c) Where inputs are used for any other purposes in addition to use in the course of business. Provided that input tax credit shall be proportionate to taxable sale out of total sales 'and also shall be proportionate to taxable purchase out of total purchase for the goods as mentioned in schedule VIII'1 Provided further that in case of consignment transfer, so much of input tax credit shall be given as may be prescribed. (3) Input tax credit shall be allowed for purchase of goods made within the State of Tripura from a registered dealer holding a valid certificate of registration and which are intended for the purpose of – (a) sale or resale by him in the State of Tripura; or (b) use as raw material or as capital goods in the manufacturing and processing of goods other than those exempted from tax under this Act intended for sale in the State of Tripura; or (c) sale in the course of export out of the territory of India; or (d)

for use as containers for packing of goods other than those exempted from tax under this Act for sale or resale in the State of Tripura; Provided that if purchases are used partially for the purposes 1 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)