Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2011 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (3) TMI 1542 - HC - VAT and Sales TaxBenefit of deduction of the value of the raw material & the value of the manufactured goods denied - exemption from payment of entry tax in respect of plant and machinery denied Held that:- In the instant case, the manufactured goods though attracted tax falls under Schedule II that is exempted from payment of entry tax. Therefore the raw materials, component parts and inputs whether used in the manufacturer of tractor, shall be deducted from the value of the manufactured goods for the purpose of calculating composition tax under section 5C. The reasoning of the Tribunal that there is no provision providing for such deduction is ex facie incorrect and cannot be sustained. Therefore, the said contention of the revision petitioner is upheld - matter remanded back to the assessing authority to give deduction to the value of the raw materials, component parts and inputs which are used in the manufacture of goods on which goods entry tax is exempted under this Act and deduct a sum from the value of manufactured goods and reassess the tax liability and if any amount has been paid in excess of amounts due under section 5C, to refund the same to the assessee in accordance with law. To that extent the revision petition is partly allowed. The assessing authority is directed to reassess the tax liability.
|