9911796707
TMI Blog2012 (8) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... eering, VNIT Nagpur?" ii) Whether on the facts and in the circumstances of the case and true and correct interpretation of provisions contained in Rule 52(1) (a) of the Maharashtra Value Added Tax Rules 2005, the Tribunal is justified in holding that the Respondent is entitled for set off under the said Rule in respect of purchases of HSD Oil even though it is notified as motor spirit vide Notification dated 30.11.2006 issued U/S 41(4) of the MVAT Act, 2002 and set off is not admissible U/R 54(b) of MVAT Act, 2002 ?" 3. Few facts necessary for the disposal of these two appeals are as under:- The respondent is manufacturer of sponge iron. The process of manufacturing of sponge iron involves use of raw material i.e. iron ore, coal and dolomite. The respondent had for the assessment year 1.4.2005 to 31.3.2006 and assessment year 1.4.2006 to 31.3.2007 claimed set-off of 100% in respect of the tax paid on the coal purchased and used in the manufacturing of sponge iron. The respondent before the assessing officer claimed that said coal was used as raw material for manufacturing sponge iron from iron ore and that is how the respondent claimed 100% set off as per Rule 53 of MVAT Rules, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal granted set off under Rule 52(1) of MVAT Rules out of tax paid in regard to purchase of HSD Oil which was used by the respondent as fuel, as the said fuel was purchased from registered dealer by calculating it as per Rule 53(1) i.e. reducing 4% of the purchase price. 7. Learned Advocate Mrs. Uma Palsuledesai, appearing on behalf of the appellants i.e. State of Maharashtra submitted that the said Tribunal has erred in allowing both the appeals. In the first place she advanced submissions as regards use of coal as a fuel. In connection with this point she had taken us through a report submitted by the Head of the Department of Department of Metallurgical and Materials Engineering Visvesvaraya National Institute of Technology, Nagpur, being report dated 29.2.2008. Learned Advocate Mrs. Palsuledesai had submitted that by the said report the author of the said report has in terms observed that the coal which is used in the manufacturing of sponge iron generates heat and it plays the role of fuel in the Rotary Kiln Process. Learned Advocate Mrs. Palsuledesai had supported the orders passed by the Assessing Officer as well as the Appellate Authority and had submitted that the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the authorities below. The text of the report is as follows: "Report: In the Rotary Kiln Process of manufacturing Sponge Iron, a premixed charge of iron Ore, Non-Coking Coal and flux is added inside the Kiln. This charge forms a bed inside the Kiln and slowly moves towards the discharge end. During the transit of the charge, the Iron Ore is slowly converted into Sponge Iron, by the process of reduction. Inside the bed, the carbon of the Non-Coking Coal reduces the Iron Oxide slowly to Iron and the carbon gets converted to Carbon-mono-Oxide gas. Thus, inside the bed the coal plays the role of a reductant. The gas Carbon-mono-oxide rises out of the bed and is now post-combusted to gas carbon-dioxide by carefully admitting air inside the Kiln. This reaction taking place in the area above the bed is a highly exothermic reaction and produces the bulk of the heat required for the process. Thus, the Non-coking coal provides the gas Carbon mono-Oxide for satisfying the heat requirements of the process i.e. it indirectly plays the role of a fuel in the Rotary Kiln Process. It is impossible to quantify the ratio of coal as a reductant vs. fuel in the Rotary Kiln" 10. We have perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the said Rules. The appeal carried to the Joint Commissioner of Sales Tax (Appeals) Nagpur Division, Nagpur, was dismissed by the order dated 21.1.2010. The said Tribunal had allowed the appeal filed by the respondent and granted set off under Rule 52 out of tax paid on the purchase of HSD Oil, more particularly stated in order dated 2.12.2010. 13. Learned Advocate Mrs. Palsuledesai appearing on behalf of the appellants took us through the provisions of Rule 52, Rule 53 and Rule 54 (b) of the said Rules. She had submitted that the said tribunal erred in not appreciating the provisions of Rule 54 clause (b) of the said Rules. Learned Advocate Mrs. Palsuledesai had submitted that the said Tribunal ought to have noted that the set off for purchase of motor spirits under sub section (4) of Section 41 would not be admissible unless the said motor spirit was dealt with in accordance with clause (b) of Rule 54 of said Act. Learned Advocate Mrs Palsuledesai submitted that it was necessary for the said Tribunal to consider Rule 52, Rule 53 and Rule 54 together and the said Tribunal should have by relying upon Rule 54 clause (b) confirmed the orders passed by the Assessing Authority as w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
