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2021 (8) TMI 595 - HC - VAT and Sales TaxReversal of Input Tax Credit - invisible loss occasioned during the process of manufacture of Ghee - Section 19(9)(iii) of the Tamil Nadu Value Added Tax Act, 2006 - HELD THAT:- The issue is decided in the case of M/S. SARADHAMBIKA PAPER AND BOARD MILLS PRIVATE LIMITED VERSUS THE STATE TAX OFFICER GOBICHETTYPALAYAM, THE APPELLATE DEPUTY COMMISSIONER (ST) [2021 (7) TMI 341 - MADRAS HIGH COURT] where it was held that Issue decided in the case of M/S. ARS STEELS & ALLOY INTERNATIONAL PVT. LTD. VERSUS THE STATE TAX OFFICER, GROUP – I, INSPECTION, INTELLIGENCE – I, CHENNAI [2021 (6) TMI 957 - MADRAS HIGH COURT] where it was held that the reversal of ITC involving Section 17(5)(h) by the revenue, in cases of loss by consumption of input which is inherent to manufacturing loss is misconceived, as such loss is not contemplated or covered by the situations adumbrated under Section 17(5)(h). The above order has been passed in the context of TNVAT and would be applicable to the facts and legal position in this case as well. The sole distinction is that the commodity in that case was steel whereas the product in the present case is Ghee and this difference is not material. Petition allowed.
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