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TMI Blog2014 (10) TMI 1014X X X X Extracts X X X X X X X X Extracts X X X X ..... ected from the invoices. The authorities have not applied their mind to these contentions nor have recorded any finding based on facts. Under the circumstances the proper course is to set aside the order impugned in these petitions - matter remanded back to the first appellate authority to consider the documents produced by theassessee and then decide from Devanagunthi Bottling plant, whether there is a stock transfer in respect of non domestic LPG purchased from local registered dealer and if there is no such stock transfer and if all these purchases is sold within the State, then whether the assessee is entitled to the benefit of input tax credit. Appeal allowed in part by way of remand. - STRP NO.312/2012 AND STRP NOS.81-127/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... industrial and non-domestic and LPG-domestic from M/s. HPCL, which was the only source from whom LPG was purchased within the State. The assessee does not have own storage tanks and therefore, takes on hire the storage tanks belonging to M/s. HPCL situated at Village Bala, Katipalla, Mangalore and keeps therein own stocks of petroleum products and LPG purchased from various sources. From the stocks thus held in the common storage tanks of M/s. HPCL, the assessee drew the required quantities of LPG domestic and industrial and supplied to the bottling plants, above mentioned. M/s. HPCL sold LPG domestic to the assessee charging tax at 4% and sold LPG industrial and non-domestic charging tax at 12.5%. The assessee assigned product code 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te and outside the State by way of selling but also stock transferred to places outside the State to its branches. Thus, there is intermixing of the local purchases, inter state purchases and imports made from outside the country in the bottling units situated at the aforesaid three places. There is no identification of local sales. The purchases being sold within the State or outside the State or stock transferred. Therefore, the assessing authority rejected theclaim of the assessee for input tax credit on the local purchases of LPG in its entirety and instead applied the formula prescribed under Rule 131(3) of KVAT Rules, 2005, so as to arrive at the non - deductible Input tax credit. The assessee challenged re-assessment order and the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistered dealer HPCL. This aspect has not been considered by both the appellate authorities and therefore, he submits that the impugned order requires to be set aside. 4. Per contra, learned Counsel for the revenue supported the impugned order. 5. The above revision petitions were admitted for consideration of the following questions of law: 1. Whether in the facts and circumstances of its case, where the petitioner maintained separate account for the LPG industrial non domestic purchased from local registered dealer M/s. HPCL by assigning product code 94000 and for the purchases to have been sold within the State as taxable sales, the Karnataka Appellate Tribunal was justified and righ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances, in our view, the proper course is to set aside the order impugned in these petitions. Remand the matter back to the first appellate authority to consider the documents produced by theassessee and then decide from Devanagunthi Bottling plant, whether there is a stock transfer in respect of non domestic LPG purchased from local registered dealer and if there is no such stock transfer and if all these purchases is sold within the State, then whether the assessee is entitled to the benefit of input tax credit. 7. Accordingly, the petitions are allowed in part. The impugned order is set aside. The entire matter is remitted back to the first appellate authority for consideration of the aforesaid issue in the light ..... X X X X Extracts X X X X X X X X Extracts X X X X
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