Input tax credit on building

As per Karnataka VAT act No input tax credit of VAT for cement.

Regards

Dayananda

the phrases ‘capital assets' and ‘capital goods' cannot be held to be synonymous. The phrase ‘capital assets' had wider meaning and would include capital goods and other assets such as immovable property in the form of building etc. Thus, the foundations and supporting structures embedded to earth may be categorized as capital assets but would not qualify to be capital goods in terms of the definition contained in the Cenvat Credit Rules. It held that foundations and supporting structures were neither machinery items, nor components, spares nor accessories of machineries, nor have they been listed for special inclusion in the definition. They were held not to be part of accessory of the machinery. They were also held to not intermediate goods arising in the process of manufacture of final product. 

So in the above decision it  is clear that cement and steel items could not be considered as inputs and therefore credit would not be available on the same.