9911796707
TMI Blog2021 (8) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... AS HIGH COURT] where it was held that the reversal of ITC involving Section 17(5)(h) by the revenue, in cases of loss by consumption of input which is inherent to manufacturing loss is misconceived, as such loss is not contemplated or covered by the situations adumbrated under Section 17(5)(h). The above order has been passed in the context of TNVAT and would be applicable to the facts and legal position in this case as well. The sole distinction is that the commodity in that case was steel whereas the product in the present case is Ghee and this difference is not material. Petition allowed. - W.P. Nos.14166, 14176, 14171, 14173 & 14175 of 2021 And WMP. Nos.15052, 15054, 15055, 15046 & 15051 of 2021 - - - Dated:- 11-8-2021 - Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Prabakar, learned counsel for the petitioner that an additional issue is raised in regard to stock reconciliation. The admitted position as far as this issue is concerned is that the vehicle movement register correlating to the vehicle gate passes issued, have been specifically sought for by the authorities but not produced at the time of assessment. Though the learned counsel for the petitioner states that the details have produced before this Court, learned counsel for the respondent would point out that this issue is factual in nature and as such, it would be better that the petitioner approach the appellate authority by way of a statutory appeal. 3. I agree, Since the evidences in support of the petitioner's stand have been pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) grants eligibility to ITC of the amount of tax paid under the TNVAT Act by a registered dealer. It sets out situations where such ITC shall be denied as well. 8. The provisions of Section 19, as relevant for the issue dealt with in these matters, are extracted below: 19. Input tax credit .- (1) There shall be input tax credit of the amount of tax paid Omitted[or Payable] under this Act, by the registered dealer to the seller on his purchases of taxable goods specified in the First Schedule : Provided that the registered dealer, who claims input tax credit, shall establish that the tax due On purchase of goods has actually been paid in the manner prescribed by the registered dealer who sold such goods and that the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of the following, namely:- ............. (c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service; (d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business. Explanation. For the purposes of clauses (c) and (d), the expression construction includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property; (e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee, whereas the input in the finished product was marginally less. The department proceeded to reverse the cenvat credit on the difference between the original quantity of input and the input in the finished product. 14. The Bench, noticing at paragraph 13 that some amount of consumption of the input was inevitable in the manufacturing process, held that cenvat credit should be granted on the original amount of input used notwithstanding that the entire amount of input would not figure in the finished product. They state at paragraph 13 as follows: 13. To say that what is contained in finished product is only a quantity of all the inputs of the same weight as that of the finished product would presuppose that all ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
