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2021 (8) TMI 1011 - HC - VAT and Sales TaxInput Tax Credit - Coal is a raw material for manufacturing of cement or not - rejection of the report of a technically qualified person or not - applicability of decision in the case of COLLECTOR OF C. EX. VERSUS BALLARPUR INDUSTRIES LTD. [1989 (9) TMI 102 - SUPREME COURT] - HELD THAT:- In the present case, the coal is used not merely as a fuel but when it gets burnt up in the process of preparation of clinker, it produces coal ash which gets absorbed by clinker. Clinker is a raw material goes into the composition of cement. The report of the Senior Manager (Technical) of the Petitioner which was available with the ACST, explained the use of coal as a raw material in the manufacture of cement. It was pointed out that clinker cannot be produced without coal and the cement cannot be produced without clinker. This makes coal a vital and necessary raw material for manufacturing cement. This Court in M/S. NATIONAL ALUMINUM COMPANY LIMITED, VERSUS DEPUTY COMMISSIONER OF COMMERCIAL TAXES, BHUBANESWAR-III, CIRCLE, [2012 (11) TMI 835 - ORISSA HIGH COURT] where the question was whether coal, alum, caustic soda and other consumables used as inputs for manufacturing of aluminum, aluminum ingots and sheets would enable the Petitioner in that case to avail input tax credit on such inputs. That question was answered in the affirmative in favour of the said Petitioner. The Court concludes that in the present case, the coal used in the process of manufacture of cement is indeed an input within the meaning of Section 2(25) of the OET Act and therefore qualifies for input tax credit as claimed by the Petitioner - the Tribunal erred in holding that the coal is not a raw material for manufacturing cement - the Tribunal erred in coming to the conclusion that coal could not be treated as a raw material vis-à-vis the finished product i.e. cement. Revision petition disposed off.
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