Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2022 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 1101 - HC - VAT and Sales TaxInput Tax Credit - Reserved Input Tax Credit (RITC) - purchase of plastic chairs which were not sold but used as scrap/raw material for manufacturing of new chairs - whether Input Tax Credit is available only when the purchase goods have been sold in the same form and condition either within the State of U.P. or outside the State of U.P.? - HELD THAT:- Admittedly, the revisionist is a registered dealer under the VAT Act. It is not in dispute that for manufacturing of plastic chairs, raw materials were used. Admittedly, the chair purchased by the revisionist were used as raw material after making the said chairs as scrap on which the tax were already paid. The authorities have made RITC on the ground that the purchased chair have not been sold in the same form and condition. The authoritie have lost sight of the fact that the revisionist is manufacturer of plastic chair as well as trader also. It is not in dispute that the plastic chairs which were purchased after payment of tax have been used for manufacturing of plastic chair. Once this fact has not been disputed, the authorities were not justified in reversing the ITC of the revisionist. Section 13 (1) (A) of VAT Act specifically provides that if the purchased goods are used in manufacturing of any taxable goods except non VAT goods and thereafter if, such manufactured goods are sold either inside the State or in the course of interstate trade or commerce, the full amount of input tax has to be given - Admittedly, respondents dealer after purchase of chair used the same in manufacturing of new chair, then as per the above mentioned provisions/serial no. 2 of the table entitles full input tax credit to it. The said claim of ITC has wrongly been denied. Learned Standing Counsel could not show any such restrictions provided under the Act that on the activity of the revisionist there is such prohibition for reversal of input tax credit. In absence of such a provision being pointed out by learned Standing Counsel, the revisionist is entitled for claim of its input tax credit on the purchase of its use in the manufacturing of new chairs. The revisions are allowed.
|