(5)(a)Input tax credit on capital goods shall be allowed from the date of first sale of taxable goods produced or manufactured after the commencement of such production and shall be adjusted against the output tax over a period not exceeding three years:Provided that no input tax credit shall be allowed on such capital goods used for the purposes and in the circumstances as specified in Schedule 'D'.(b)Input tax credit under clause (a) of this sub-section shall be allowed in lump sum provided that value of such capital goods is rupees one lakh or less.(c)Input tax credit on capital goods shall be allowed only on purchase of such goods made on or after the appointed day.(d)In case of closure of business before the commencement of commercial production, no input tax credit on capital goods shall be allowed and input tax credit carried forward, if any, shall be forfeited.(e)In case where there is production of both taxable goods and goods exempt from tax, the input tax credit admissible on capital goods shall be determined in the manner prescribed.(f)Where the used capital goods are sold, the same shall be subject to tax under this Act.
