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2014 (7) TMI 783 - HC - VAT and Sales TaxEligibility to input tax credit - goods destroyed in flood - Compensation already granted by Insurance company - no Out Put Tax liability is created for the same goods - whether on the goods destroyed in flood, a dealer shall be entitled to input tax credit or not - Held that- due to the act of God, the flood and the entire goods being destroyed, it was impossible for the respondent - dealer to comply with the conditions for availing input tax credit on the goods destroyed in flood i.e. it was impossible for the respondent - dealer to sell, resell or to use the same in manufacture of goods. When it was impossible for the respondent - dealer to comply with all the conditions stipulated for input tax credit due to act of God and it was beyond the control of the respondent - dealer to fulfil the conditions for availment of the input tax credit due to the act of God - in the present case, the flood, which can be said to be valid excuse for not fulfilling the conditions stipulated for availing input tax credit on the goods destroyed in flood and therefore, interpreting the provisions for availing input tax credit, it is hereby held that the respondent herein - dealer shall be entitled to input tax credit on the goods destroyed in flood. However, subject to rider that if such dealer is compensated by the Insurance Company with respect to loss sustained i.e. with respect to the goods destroyed, the same can be given credit, meaning thereby, to that extent the respondent - dealer shall not be entitled to input tax credit, otherwise, it will be giving a double benefit to the respondent - dealer. - as such no error has been committed by the learned tribunal in allowing the appeal preferred by the respondent - dealer and holding that the respondent herein - dealer shall be entitled to input tax credit on the goods destroyed in flood. No question of law much less substantial question of law arises - Decided against Revenue.
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