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TMI Blog2016 (2) TMI 963X X X X Extracts X X X X X X X X Extracts X X X X ..... credit will be available to the dealer. It has been categorically recorded by the Tribunal that there is no mention in the assessment order of any petroleum products purchased inside the State and used in manufacture whether as fuel or otherwise. The record however shows that the petroleum products had been purchased inside the State at concessional rate of tax. There is no finding to the effect that the furnace oil was used as fuel by the company. In the absence of any clear finding recorded by the revisional authority that the furnace oil was used as fuel by the assessee, the revisional order regarding disallowance of input tax credit on purchase of furnace oil could not be legally sustained. For the assessment year 2005-06, under simila ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gricultural implement used for cultivation of land for agricultural purpose. The raw material for manufacturing of disc is billet (small bar of metal for further processing) or old railway line i.e. iron and steel which is first cut into size, heated in a furnace at a high temperature, rolled to make a plate and then cut in the shape of a disc. Finally, the product is painted or powder-coated for marketing and longevity. The respondent company purchased petroleum products i.e. furnace oil worth ₹ 2,91,17,607/- for use in furnace for heating involved in processing of metal for manufacturing of discs and claimed input tax credit on it in its returns which was allowed by the Assessing authority vide order dated 24.2.2006, Annexure A.1. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leum product and natural gas when used as fuel or when the same are exported out of State, no input tax credit will be available to the dealer. It has been categorically recorded by the Tribunal that there is no mention in the assessment order of any petroleum products purchased inside the State and used in manufacture whether as fuel or otherwise. The record however shows that the petroleum products had been purchased inside the State at concessional rate of tax. There is no finding to the effect that the furnace oil was used as fuel by the company. In the absence of any clear finding recorded by the revisional authority that the furnace oil was used as fuel by the assessee, the revisional order regarding disallowance of input tax credit o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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