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TMI Blog2021 (1) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... siness. Since the said inputs and capital goods have been used in manufacture of finished goods that have been destroyed, the same are not used in course or furtherance of business. We, therefore, hold that the Input Tax Credit taken on the inputs used in the manufacture or production of goods i.e. intermediate dye and the Input Tax Credit taken on input services used in or in relation to the manufacture or production of said goods shall be reversed. X X X X Extracts X X X X X X X X Extracts X X X X ..... levy; Section 2(63) - "input tax credit" means the credit of input tax. 6. Section 16 of the SGST Act, provides for eligibility and conditions for taking input tax credit. As per the said section- 16. (1) "every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person" 7. On a combined reading of Section 2 and Section 16 of SGST Act, 2017, it can be construed that the definition of input tax is very wide and a registered person is entitled to take input tax credit on inputs, input service and capital goods if the same are used by him in course or furtherance of his business or the registered person has an intention to use such inputs, input service or capital goods in the course or furtherance of his business at the time of procurement of such goods/ services. 8. However, such availment of input tax credit is subject to certain restriction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ession 'in respect of' as synonymous with the expression 'on'. If excise duty was paid on raw tobacco, it can be attributable only to the raw tobacco and not to chewing tobacco. It was held that no deduction of excise duty is permitted to the assessee. The copy of judicial precedent is also furnished by them. 10. Applying the same ratio in interpreting Section 17(5) of SGST Act, it can be said that input tax credit shall not be available on inputs destroyed. Once the goods (inputs) are utilized in the manufacture of finished/intermediate goods (which can be further used for manufacture of finished goods), inputs have been said to be consumed and have lost its identity and have been used in course or furtherance of business. Once the finished/intermediate goods are manufactured and subsequently get destroyed, then by no stretch of imagination it can be held that the inputs got destroyed, as what is destroyed is finished/intermediate goods and not the inputs. 11. The said section nowhere states that input tax credit in respect of inputs utilized for manufacture of finished / intermediate goods shall be reversed, if such goods get destroyed. Once the input tax credit has been availe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes that was lying in stock and got destroyed on the date of fire. 17. At the time of personal hearing held through Video Conferencing on 24.09.2020, the Authorised Representative of the applicant, CA Dhaval Shah reiterated the facts as stated in the application and as mentioned herein above. DISCUSSION & FINDINGS: 18. We have carefully gone through the facts of the case, written and oral submissions made by the applicant in their application for advance ruling as well as at the time of personal hearing and the applicable provisions of the GST Laws in this regard. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 19. In this case, a moot point is to be decided regarding reversal of Input Tax Credit on inputs consumed in dye intermediates (which is also a finished goods) that was lying in stock and got destroyed in fire. 20. Few facts relevant for the present purpose, those are as follows: (i) The applicant is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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