Section 21(5) in The Police Enhanced Penalties Ordinance, 2005
(5)Input Tax credit on capital goods shall be limited to plant and machinery directly connected with the manufacturing or processing of the finished products and input tax credit as admissible under this section shall commence from the date of commencement of commercial production or sale of taxable goods and shall be adjusted against tax payable on output over a period of three years in equal installments with rebating allowed in every tax period:Provided that in case of closure of business before the period specified in this sub-section, no further input tax credit shall be allowed and input tax credit carried forward, if any, shall be forfeited.
