Applicability of vat on building material in andhra pradesh

Hi,

We are setting up a factory in Chittoor district of Andhra Pradesh. 

We have used sand, blue metal (20 mm, 40 mm stone) and bricks for the construction of the factory.

The purchases have been done through unregistered dealers as this material is available only through them.

The Commercial Tax Officer (CTO) has told us that we need to pay 5% VAT on the purchases done for building construction.

Can you please tell us whether the CTO is right? We do know that VAT is applicable on construction material, but is there any provision for exemption since the items were not used for resale and it is for asset creation.

Thanks & Regards,

Shelly Agrawal