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TMI Blog2016 (8) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the appellant is entitled for input tax credit on the tax paid by it under the Punjab VAT Act 2005 on the purchases of pet coke where it is used for generation of electrical energy for captive consumption? (ii) Whether on the facts and in the circumstances of the case, the restrictions mentioned in Section 13(5)(i) read with Section 13(4) are applicable on the purchase of pet coke? (iii) Whether on the facts and in the circumstances of the case, the impugned order is violative of principles of natural justice as all the issues raised before the Tribunal have not been dealt in the order? (iv) Whether on the facts and in the circumstances of the case, the clarification issued by the Ld. Commissioner in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to input tax credit on the transactions, as referred to above. The Excise and Taxation Commissioner, vide order dated 26.4.2014, clarified that the appellant will not be entitled to benefit of input tax credit as the same is available on the goods mentioned in Section 13(4) of the Act. The order was challenged before the Tribunal, who vide its order dated 4.12.2015 dismissed the appeal relying upon an earlier judgment of this court in State of Punjab and others v. Malwa Cotton & Spinning Mills Ltd., (2011) 39 VST 65 (P&H). While impugning the orders passed by the Excise & Taxation Commissioner as well as the Tribunal, learned counsel for the appellant submitted that the provisions of Section 13 of the Act, which provide for input tax cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oviding for input tax credit on the goods, which are used for generation of power for captive consumption, for which Sections 13(4) and 13(5)(b)(i) of the Act are relevant. As admittedly the appellant is using pet coke for generation of power for captive consumption, it is not entitled to input tax credit thereon. Heard learned counsel for the parties and perused the paper book. The relevant provisions of Section 13 of the Act are extracted below: "SECTION 13. INPUT TAX CREDIT: (1) A taxable person shall be entitled to the input tax credit, in such manner and subject to such conditions, as may be prescribed, in respect of input tax on taxable goods, including capital goods, purchased by him from a taxable person within the State during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 13(1) of the Act shows that a taxable person shall be entitled to input tax credit in respect of input tax paid on taxable goods purchased from a taxable person within the State if goods are sold within the State or in the course of inter-State trade or commerce or in the course of export outside the territory of India or are used in the manufacture, processing or packing of taxable goods for sale within the State or in the course of inter-State trade or commerce or in the course of export outside the territory of India. Sub -section (4) of Section 13 of the Act restricts the benefit of input tax credit over and above 5% on furnace oil, transformer oil, mineral turpentine oil, water methanol mixture, naphtha and lubricants, if these goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of electrical energy for captive consumption, the benefit of input tax credit shall be available subject to the provisions of sub-section (4) of Section 13 of the Act. Section 13(4) of the Act enumerates certain specific goods for the purpose of entitlement of input tax credit in case those are used in production of taxable goods or for captive generation of power. It further provides that benefit shall be available only in case the tax already paid exceeds 5%. The fact is that provision has been made in Section 13(5)(i) of the Act for permitting input tax credit on all goods used for generation, distribution and transmission of electrical energy if used for captive consumption. The spirit thereof cannot be ignored.It has been made sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As far as the judgment of this court in Malwa Cotton & Spinning Mills Ltd.'s case (supra) is concerned, it was a case of claim of input tax credit on diesel, for which there is a specific provision in Section 13(5)(b) of the Act, which debars input tax credit to a person on purchase of petrol, unless he is in the business of selling that product. The undisputed fact in the present appeal is that pet coke, which the appellant is purchasing for use in production of power for captive consumption, is not mentioned in Section 13(5)(b) of the Act, for dis-entitling the appellant input tax credit thereon in its entirety or restricting the claim to certain limit, as provided in Section 13(4) of the Act. For the reasons mentioned above, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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