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TMI Blog2014 (10) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... ss. Therefore, section 17(3) is applicable. Insofar as input tax deduction credit in respect of capital goods is concerned, it was contended slotted angles falls in entry No.5 of 5th schedule in respect of which no rebate is permissible. The argument is, what is purchased by the assessee is slotted angle framework which includes slotted angle + gusset plates + bolt & nuts. Slotted angle is different from slotted angle framework. Slotted angle framework is used by the assessee to keep his manufactured goods. It is in the nature of capital investment and therefore, he is entitled for the benefit of input tax rebate. As such, it does not fall within entry 5 of 5th schedule. Decided against Revenue. - STRP No.311/2012 & STRP Nos.86-96/2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as no nexus between the manufacturing of the goods and sale of goods. In the course of a job work, consumables are used. When the dealer purchases these consumables, he is liable to pay input tax. After using these consumables, employing the labour job, work is completed and the finished product is delivered to the customer. What the customer pays is the labour charges on which the assessee is not liable to pay any output tax. However, he has utilized the consumables in manufacturing the finished product and he has paid input tax on such consumables. But, this business of job work is in the course of his business. Therefore, by virtue of sub-section (2) of Section 10, if he has paid input tax on consumables which is used in the course of hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 of 5th schedule in respect of which no rebate is permissible. The argument is, what is purchased by the assessee is slotted angle framework which includes slotted angle + gusset plates + bolt nuts. Slotted angle is different from slotted angle framework. Slotted angle framework is used by the assessee to keep his manufactured goods. It is in the nature of capital investment and therefore, he is entitled for the benefit of input tax rebate. As such, it does not fall within entry 5 of 5th schedule. Accordingly, said question is answered in favour of the assessee and against the revenue. In view of the above, we do not see any merit in these petitions. Accordingly, the petitions are dismissed. - - TaxTMI - TMITax - CST, VAT & Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X
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