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2022 (4) TMI 1488 - HC - VAT and Sales TaxBenefit of input tax credit - goods which were consumed by the petitioner during the manufacturing of finished goods (pre-fabricated structures) - goods essential for manufacturing the finished goods on the garb of goods treated as consumable - benefit of notification dated 31.03.2008, retrospective or prospective - HELD THAT:- The revisionist-firm is manufacturing pre-fabricated structures which involve gas and electric welding. In other words, gas and electric welding is an integral part of the manufacturing process. It is also well-known that in the process of welding, welding electrodes are very much necessary. Though, they lose their character and nature in the end product, but, nonetheless, without welding electrodes, a welding cannot take place, and pre-fabricated products cannot be manufactured. Hence, we are of the opinion that welding electrodes are “raw material” as far as manufacturing the pre-fabricated products are concerned, and therefore, the learned Assessing Authority, as well as the learned Tribunal, have committed error on record by not extending the benefit of input tax credit to the revisionist which assessing the tax liability. The matter is remitted back to the Assessing Authority to re-assess the tax liability of the revisionist by giving the benefit of input tax credit - Revision allowed.
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