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2021 (4) TMI 136 - MADRAS HIGH COURTViolation of principles of natural justice - specific personal hearing notice to the assessee not issued by assessing authority - reversal of Input Tax Credit (ITC) on furnace oil and LSHS oil - HELD THAT:- The impugned order will have to be set aside for the simple reason that the assessing authority did not give specific personal hearing notice to the assessee. Of course, in the impugned order, it has been mentioned that the authorised signatories were allowed to discuss the issue many times and no additional details were adduced. Of course, there was informal interaction between the assessee on the one hand and the authority on the other. When Section 27 of the TNVAT Act, 2006 contemplates grant of personal hearing to the assessee, it will have to be fulfilled only by issuing personal hearing notice. In the case on hand, no personal hearing notice was issued - non-issuance of independent personal hearing notice had indeed vitiated the impugned proceedings. Input Tax Credit (ITC) - HELD THAT:- The Hon'ble Division Bench of the Orissa High Court in the case of Reliance Industries Ltd. vs Asst. Commissioner Of Sales Tax [2008 (5) TMI 620 - ORISSA HIGH COURT] held that the furnace oil was used in the process of manufacturing of the final product and it has to be treated only as an input tax credit and that therefore, the input tax paid on the purchase of furnace oil can be claimed as input tax credit - assessee has been contending right from the inception that the furnace oil is being utilised only for maintaining the heat for the purpose of smelting copper and that it was not used for production of electricity. This issue could have been resolved only by holding proper study and conducting spot inspection and verifying the manufacturing process of the assessee. This exercise was not undertaken. It is for this reason, the learned counsel for the petitioner submitted that the matter will have to be revisited by the authority - the matter is remitted to the file of the assessing authority to pass orders afresh in accordance with law - Petition allowed by way of remand.
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