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2014 (8) TMI 445 - HC - VAT and Sales TaxValidity of Circular No. 47 of 2005-06 - Inclusion of evaporation loss component in the claim of input tax credit - Jurisdiction of Commissioner - encroachment on the power and functioning of quasi-judicial bodies - Held that:- Section 67 empowers the Commissioner to decide or determine specific questions. It places in position an elaborate procedure for determination of such questions; it is not as if all questions can be taken on board and decided as specific questions by the Commissioner. It would be apparent from section 84 that determinable questions which might call for decisions in a particular assessment proceeding (as long as it is not pending before the court of law and is not covered by situations spelt-out in section 84(3)), can be answered by the Commissioner. Such decisions of the Commissioner have binding effect on the party in terms of section 84(9). These proceedings are akin to advance ruling proceedings enacted in various fiscal statutes such as Income-tax Act, Central Excise Act, etc. Existence of section 67(3) is of no assistance. Facially section 67(3) supports the submission of the petitioner that no direction of the kind made by the impugned circular could have been issued by the Commissioner. If understood in its proper perspective, the impugned circular dated January 23, 2006 (No. 47/2005-06) in this case cannot be said to fall within the power of the Commissioner at all. In other words, if the circular purports to direct the assessing or quasi-judicial authorities to take a particular view and not grant credit in respect of evaporation loss, that is not to be interpreted as binding; the assessing authorities, of course, are entitled to take into consideration Revenue's concerns, as are permitted by law, while examining the claims for credit at the point of sale to their customers - impugned circular dated January 23, 2006 (Circular 47 of 2005-06) shall not bind the authorities into taking a particular view to disallow the claims for the evaporation losses claimed as credit by the petitioners at the point of sale to their customers. Such claims shall be examined and taken into account by the assessing authorities on a factual basis - Decided in favour of applicant.
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