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TMI Blog2023 (1) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... a manufacturer using raw material and packaging material. The controversy relating to set off has been engaging the attention of this Court as well as Apex Court in various judgments. The Apex Court has considered on number of occasions the matter relating to the grant of set off for various states and in one of the matter M/s. Vam Organic Chemicals Ltd. Vs. State of U.P. others [ 2003 (3) TMI 672 - ALLAHABAD HIGH COURT] where it was held that for use in manufacture of notified goods which finds place in Section 4-B (2) of the Act of 1948 it would take within its compass diesel oil used by the manufacturer in generators installed in factory premises to produce electricity. The Division Bench had held the diesel oil used in the generator to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er is the natural gas which is a raw material. The fire which is ignited for making the M.S. Ingot is by the use of natural gas. Thus, the process of manufacture of M.S. Ingot requires certain raw materials and natural gas fits into the definition of raw material, as provided under Section 4-BB of the Act of 1948. This Court finds that the gas used by the assessee in the manufacture of M.S. Ingot is one of the raw material, as mentioned in Section 4-BB of the Act - Revision allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... on the facts and circumstances of the case the applicant has purchased natural gas after due payment of tax and the same were used in the furnace for the purposes of blowing and melting the iron steel for the manufacture of ultimate product, namely M.S. Ingot, C.I. Castings etc.?" 5. Learned counsel appearing for the assessee has submitted that the natural gas purchased by the assessee from Gas Authority of India Limited (GAIL) is a raw material used in manufacture of M.S. Ingot and, thus, in view of Section 4-BB of U.P. Trade Tax Act, 1948 (hereinafter referred as the 'Act of 1948') was entitled to set off. He further submitted that the Tribunal was not justified in refusing the claim of the assessee and upholding the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the material on record. 9. The sole dispute in the present revision is whether the benefit of set off as envisaged under Section 4-BB of the Act of 1948 could be passed upon the assessee/dealer or not, though the raw material has not been defined under the Act but the Section provides for giving the benefit of set off to a manufacturer using raw material and packaging material. The controversy relating to set off has been engaging the attention of this Court as well as Apex Court in various judgments. The Apex Court has considered on number of occasions the matter relating to the grant of set off for various states and in one of the matter M/s. Vam Organic Chemicals Ltd. Vs. State of U.P. & others, 2003 UPTC 467, while relying upon the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been passed on by the Division Bench under Section 4-B (2) can be applied in granting the set off under Section 4-BB of the Act of 1948. This Court finds that the consideration before the Division Bench was of the raw material which has been used in the manufacture of goods by a dealer and the benefit as provided under Section 4-B (2) was given to the dealer therein. 12. The explanation to Sub-section 2-A of Section 4-B defines the goods required for use in manufacture as well as the notified goods in Sub-clause (a) and (b) of the explanation to the aforesaid provision. From the reading of Section 4-B and Section 4-BB, it is clear that the intention of Legislature was clear to the extent of giving certain relief to the manufacturer while t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the Tribunal was not justified to refuse the claim of the assessee in giving the benefit of set off. Moreover, the Tribunal has not recorded any finding while discarding the claim of the assessee. 17. In view of the said fact, this Court finds that the gas used by the assessee in the manufacture of M.S. Ingot is one of the raw material, as mentioned in Section 4-BB of the Act and is covered by the judgment of Division Bench of this Court in case of Shree Bhawani Paper Mills Ltd. (Supra). 18. On due consideration of the aforesaid, the order dated 11.05.2010 passed by the Commercial Tax Tribunal, Bench-I, Agra in Second Appeal No. 109 of 2009, is hereby quashed and set-aside. 19. Revision stands allowed. 20. The questions of law, framed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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