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2014 (6) TMI 869 - HC - VAT and Sales TaxDenial of input tax on consumables used in Dyeing and Printing of textiles - Tribunal set aside orders passed by the authorities below with a direction to the Assessing Authority to correctly workout the input tax on consumables used in the process of works contract of Dyeing and Printing of Textiles and to allow input tax - Held that:- assessee is engaged in the business of Printing and Dyeing of fabrics manufactured by them as also Printing and Dyeing of fabrics on works contract for others. No output tax is payable in respect of the works contract. However, the assessee has paid the input tax for the consumables which it has purchased to execute the works contract. The assessee is also carrying on the business of Printing and Dyeing of fabrics manufactured by them in respect of which they are liable to pay output tax. Therefore, no output tax is payable for job works. As the assessee is carrying on business of manufacturing and sale of fabrics in respect of which it is liable to pay output tax, the input tax paid in respect of job works could be set off against the output tax payable in respect of his business and therefore, the authorities below were justified in allowing the claim of the assessee and it cannot be found fault with. - Decided against Revenue.
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