2015 (8) TMI 959

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..... en taxable and tax-free goods are simultaneously manufactured, appellant dealer would be entitled to input-tax credit of total tax paid on purchase and same cannot be reduced on pro rata basis – Held that:- it is clear that manufacturer is eligible for benefit of set-off on entire amount of tax paid on purchase of raw material and principle of proportionate liability has been found to be unsustai .....

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..... t credit of taxes paid on the purchase of cotton seed used in the manufacture of cotton seed oil can be denied proportionately merely because during the process of manufacture a by-pro duct in the form of cotton seed cake is also produced, so when taxable and tax-free goods are simultaneously manufactured, the appellant dealer would be entitled to input-tax credit of total tax paid on purchase and .....

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..... facts and circumstances of the present case, the judgment of the honourable Supreme Court is applicable because the DOC, a by-product is tax-free and another by product sludge and main product oil are taxable. Hence, the authority cannot apportion the tax liability after deducting the percentage of proportionate manufacture of DOC, which has been done in the present case. From the aforesaid a .....

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