ITC not eligible on inward supply of motor vehicles used for demonstration

In re Khatwani Sales And services LLP (GST AAAR Madhya Pradesh)

The primary intention of appellant to purchase demo vehicles is to use it for demonstration and trial for the customers. He has, as per his statement, capitalised these purchases of demo vehicles in his books of account and these demo vehicles are used and replaced earlier of folic wing (a) 40,000 kms or above (b) continuation of model. It means that these vehicles have very specific object to serve and after that, these are subsequently supplied by way of sale

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