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2016 (2) TMI 963 - HC - VAT and Sales TaxCENVAT credit - Whether the input tax credit can be allowed on furnace oil (Petroleum Product) the primary use of which has fuel only? - the HVAT Act, 2003 - whether the assessee had been using the petroleum based products as a fuel or not? - Held that: - the petroleum product and natural gas when used as fuel or when the same are exported out of State, no input tax credit will be available to the dealer. It has been categorically recorded by the Tribunal that there is no mention in the assessment order of any petroleum products purchased inside the State and used in manufacture whether as fuel or otherwise. The record however shows that the petroleum products had been purchased inside the State at concessional rate of tax. There is no finding to the effect that the furnace oil was used as fuel by the company. In the absence of any clear finding recorded by the revisional authority that the furnace oil was used as fuel by the assessee, the revisional order regarding disallowance of input tax credit on purchase of furnace oil could not be legally sustained. For the assessment year 2005-06, under similar circumstances, the matter had been remanded to the revisional authority by the Tribunal to consider the contention of the assessee that it had used furnace oil for greasing and coating of discs and not as fuel by producing its books of account and other relevant documents - the matter requires to be remanded to the revisional authority i.e. DETC to pass fresh order after examining the evidence on record in accordance with law - appeal disposed off.
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