Input tax credit in respect of coal attributable to electricity produced in captive power plant by the taxpayer and used in township (residential area) adjacent to factory is now under litigation.
The petitioner argued that activities in furtherance of business are covered under Section 16 of CGST Act and township is integral part of the factory in remote area which cannot be operated without the support of such township.
The Court ordered part amount to be deposited and recovery of balance amount was stayed.
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