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2015 (8) TMI 959 - MADHYA PRADESH HIGH COURTBenefit of set-off /Input Credit Tax – Whether input credit of taxes paid on purchase of cotton seed used in manufacture of cotton seed oil can be denied proportionately merely because during process of manufacture by-product (cotton seed cake) is also produced, so when taxable and tax-free goods are simultaneously manufactured, appellant dealer would be entitled to input-tax credit of total tax paid on purchase and same cannot be reduced on pro rata basis – Held that:- it is clear that manufacturer is eligible for benefit of set-off on entire amount of tax paid on purchase of raw material and principle of proportionate liability has been found to be unsustainable –Therefore purchase made by manufacturer with regard to raw material, he is entitled to benefit of set-off on entire amount of tax and principle of apportionment cannot be invoked –Impugned order imposing liability is quashed – Decided in favour of Assesse.
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