Section 6(8) in Uttaranchal Value Added Tax Act, 2005
(8)No input tax credit shall be allowed on purchase of goods, other than the Capital Goods, when-(a)goods not connected with the business of the dealer; or(b)goods purchased from an un-registered dealer or a dealer whose Certificate of Registration has been cancelled; or(c)goods purchased from outside the State; or(d)goods the sale of which is exempted under this Act or the goods used in manufacture, processing or packing of such goods; or(e)goods whether goods as such or constituents of finished or semi finished goods which remain unsold in stock at the time of closure of business due to discontinuance by the dealer or cancellation of his registration or his being declared non-taxable under the provisions of this Act; or(f)goods transferred outside the State, otherwise than by way of sale; or(g)in respect of raw material used in manufacture or processing of goods where the finished products are dispatched outside the State other than by way of sales; or(h)goods purchased from a registered dealer who has given an option to pay Presumptive tax at a percentage of turnover of sales under sub-section (1) of Section 7 and a lump sum amount in lieu of tax on sale and, or purchase of such goods by way of composition under sub-Section(2)of Section 7; or(i)goods that are stolen or lost or destroyed or disposed of in any manner other than in ordinary course of business or goods distributed by way of free sample or gift; or(j)goods leased under an agreement of transfer of right to use any goods (whether for a specified period or not) for any purpose; or(k)goods sold by way of transfer of property in goods(whether as goods or in some other form) involved in the execution of works contract, or(l)goods on which tax being payable under this Act or under the Uttaranchal (The Uttar Pradesh Trade Tax Act, 1948) Adaptation and Modification Order, 2002 has not been paid on any earlier sale or purchase of such goods; or(m)[ Special Category Goods specified in Schedule III or the goods except molasses used in manufacture, processing or packing of such goods; or] [Substituted vide Notification No. 1314/XXXVI(4)/2008, date 31-3-08.](n)goods are used in generation of energy/power including captive power:Provided that in respect of transactions falling under [item (g)] [Substituted for 'item (f)' vide Notification No. 1314/XXXVI(4)/2008, date 31-3-08.], a partial amount of input tax credit shall be allowed in respect of tax paid [in excess of 2%] [Substituted for 'in excess of the rate prescribed under sub-section (1) of Section 8 of the Central Sale Tax Act, 1956' vide Notification No. 22/XXXVI(3)/2010/76(1)/2009,dated 07-01- 2010. Earlier the above words were Substituted for 'in excess of four percent' vide Notification No. 1314/XXXVI(4)/2008, dated 31-3-2008.] on the raw materials used directly in the manufacture of finished products;Provided further that if input tax credit on purchase of goods in the circumstances referred to in [item (g)] [Substituted for 'item (f)' vide Notification No. 1314/XXXVI(4)/2008, date 31-3-08.] above, has been claimed by a dealer, the same shall stand reversed.
