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2021 (9) TMI 571 - AAR - GSTReversal of Input tax credit - inputs consumed in expired Cakes & Pastries - goods used as raw material in manufacturing of expired cakes & pastries that were kept in display for use in course or furtherance of business - HELD THAT:- Cakes and pastry have limited shelf life and after expiry these bakery items are prohibited from sale. Attention drawn to Section 7 of Prevention of Food and Alteration Act, 1954 prohibiting the sale of expired goods as such are not fit for consumption. Further section 273 Indian Penal Code criminalizes the act of sale of harmful perishable food products - Thus, the act of throwing away expired cakes and pastries is akin to destroying the expired food products, for the applicant destroys by throwing them away. The Non-obstante clause of Section 17(5)( h) of CGST Act, 2017 overrides the operation of section 16 and section 18 of CGST Act provisions contrary to this subsection and thereby blocks ITC admissibility contrary to the said sub section. Subject goods being destroyed are covered under this non obstante clause (h) of section 17(5) CGST Act. The subject matter is covered under section 17(5) (h) of CGST Act and thereby ITC on inputs used in manufacturing expired cakes & pastries is not admissible and required to be reversed.
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