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TMI Blog2015 (11) TMI 1222X X X X Extracts X X X X X X X X Extracts X X X X ..... facturing and trading of consumer goods. It has several depots and six manufacturing units in the State of Andhra Pradesh at (1) Ghatkeswar, Hyderabad, for manufacturing tea, (2) Pamaru Maria Exports, Vijayawada, for export of shrimps, (3) Sudha Agro, Adoni, for exporting castor oil, (4) Jitendra Roller Flour Mill, Hyderabad, for manufacturing Annapurna atta, (5) Rayalaseema Alkalies, Kurnool, for manufacturing refined glycerine, and (6) JOCIL Ltd., Guntur, for manufacture of soap noodles. 2. It is not in dispute that the petitioner has a common TIN registration for all its manufacturing and trading divisions in the State of Andhra Pradesh; and the turnover of sales, branch transfers and input-tax credit of each division is consolidated, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling Authority, in case of M/s. Sri Dhanalakshmi Cotton and Rice Mills (P) Limited, Guntur, had, by order dated July 9, 2005, held that rule 20(6) of the Rules is applicable division wise in the assessment year; the assessing authority had recorded a finding that where input was used in a particular division, the input-tax credit on such inputs can be claimed separately for such division and the petitioners were adopting the same method at Hyderabad, Secunderabad, Vijayawada depots, etc.; the finding remains uncontroverted; the burden of proving that any sale or purchase effected by a dealer is not liable to tax lies on him in terms of section 16 of the Act; the petitioner had not discharged the statutory burden; division wise computation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic inputs are meant for specific outputs, can the assessee claim the benefit of rule 20(6); the words "able to establish" in rule 20(6) shows that it is at the option of the assessee; it is for the assessee to exercise his option whether or not he should claim input-tax credit in terms of rule 20(6) of the Rules; and it is not open to the assessing authority to deny the petitioner input-tax credit only on the ground that specific inputs in a division were meant for specific outputs in that particular division. 5. On the other hand, Sri M. Govind Reddy, learned Special Standing Counsel for Commercial Taxes, would contend that, except for a few months, the entire stock in the JOCIL division was transferred to units outside the State; there w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee's manufacturing unit, and the balance alone should be utilised for adjustment against the output tax payable on the trading activity. On an assessment order being passed, rejecting the petitioner's claim, the jurisdiction of this court under article 226 of the Constitution of India was invoked. It is in this context that this court held (page 576 in 62 VST):- "Both in the order of assessment, and in the counter-affidavit, the first respondent admits that there is no specific rule providing for the manner in which he had assessed the petitioner to tax. Under article 265 of the Constitution of India no tax can be levied or collected except by authority of law and in the absence of a procedure, similar to the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case in view of the judgment rendered by the A.P. High Court in Maxwroth Plywoods Private Limited [2013] 62 VST 573 (AP) : [2012] 54 APSTJ 178. The tax revision case, preferred by the State of Andhra Pradesh against the said order of the STAT, was dismissed by a Division Bench of this court in State of A.P. v. Cavinkare (P) Ltd. (T.R.C. No. 9 of 2013 decided on July 4, 2013). 8. As this court, in Maxwroth Plywoods Private Limited [2013] 62 VST 573 (AP) : [2012] 54 APSTJ 178, has held that restricting the claim of input-tax credit division wise is not authorised by law, the order of the STAT holding to the contrary, placing reliance on a decision of the Advance Ruling Authority, does not merit acceptance. In the absence of any statutory pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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