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2010 (11) TMI 867 - HC - VAT and Sales TaxWhether use/consumption of HSD and cement is integrally connected in the process of mining activities undertaken by the petitioner? Held that:- Considering the matter from any angle, we are of the view that HSD which is necessary to run the heavy machineries is integrally connected in the mining operation and processing of mining ore so long the said activities and the process is continuing. We are also of the view that "cement" is necessary for installation of the mining machineries and construction of benches/plates to carry on the mining operation and processing of mining ore. But the question that arises now is whether like HSD, cement is necessary so long mining operation and processing of mining ore goes on. Cement as stated above, is necessary for installation of machineries, i.e., primary stage of the mining activities and construction of benches and plates. After installation of the machineries and construction of benches/ plates, utilization of cement is almost insignificant. Therefore, we feel it proper to remit the matter to O.P. No. 2, Assistant Commissioner, so far as the use of cement is concerned to decide the extent of period for which the petitioner should be allowed to purchase cement at a concessional rate of tax for the purpose of utilizing the same in mining operation and processing of the mining ore. Writ allowed.
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