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TMI Blog2014 (10) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... ri H N Sreenivasa Rao, Adv. JUDGEMENT :- PER : N Kumar The State has preferred these revision petitions against the order passed by the Karnataka Appellate Tribunal holding that the assessee is entitled to the input tax rebate in respect of consumables and capital goods used in the manufacture of PCBs. 2. The two questions of law which arise for consideration in these petitions are, &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whereas the benefit of input tax rebate is available when the goods which has suffered input tax are used in the course of the business of the dealer. It has no nexus between the manufacturing of the goods and sale of goods. In the course of a job work, consumables are used. When the dealer purchases these consumables, he is liable to pay input tax. After using these consumables, employing the lab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the argument that as no output tax is payable on this turnover of the job work, the assessee is not entitled to the benefit of input tax rebate cannot be accepted. When the consumables are used in the job work in respect of which no output tax is payable by the assessee or used in the manufacturing activity and used in the manufacturing activity undertaken by the assessee on his own and when th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .5 of 5th schedule in respect of which no rebate is permissible. The argument is, what is purchased by the assessee is slotted angle framework which includes slotted angle + gusset plates + bolt & nuts. Slotted angle is different from slotted angle framework. Slotted angle framework is used by the assessee to keep his manufactured goods. It is in the nature of capital investment and therefore, he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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