TMI Blog2014 (6) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... bles which it has purchased to execute the works contract. The assessee is also carrying on the business of Printing and Dyeing of fabrics manufactured by them in respect of which they are liable to pay output tax. Therefore, no output tax is payable for job works. As the assessee is carrying on business of manufacturing and sale of fabrics in respect of which it is liable to pay output tax, the input tax paid in respect of job works could be set off against the output tax payable in respect of his business and therefore, the authorities below were justified in allowing the claim of the assessee and it cannot be found fault with. - Decided against Revenue. - STRP Nos.283/2011 & STRP Nos265 TO 275/2012 - - - Dated:- 11-6-2014 - N Kumar An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Authority for short). The First Appellate Authority dismissed the appeals confirming the order of the Assessing Authority. Aggrieved by the said order, the assessee preferred appeals before the Tribunal The Tribunal allowed the appeals and the orders passed by the authorities below were set aside with a direction to the Assessing Authority to correctly workout the input tax on consumables used in the process of works contract of Dyeing and Printing of Textiles and to allow input tax. It is also directed to find out the extent of use of capital goods for purposes of works contract of Dyeing and Printing of fabrics and to allow that portion as a deduction and to issue revised demand notice. Aggrieved by the said order, the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 14 of the Act, the assessee is not entitled to deduction on input tax. Further if the assessee has paid the output tax within the State, then it is entitled to deduction on input tax. 5. In the instant case, the assessee is engaged in the business of Printing and Dyeing of fabrics manufactured by them as also Printing and Dyeing of fabrics on works contract for others. No output tax is payable in respect of the works contract. However, the assessee has paid the input tax for the consumables which it has purchased to execute the works contract. The assessee is also carrying on the business of Printing and Dyeing of fabrics manufactured by them in respect of which they are liable to pay output tax. Therefore, no output tax is payable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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