TMI Blog2016 (6) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... the said finding with regard to the invisible loss in the process of manufacture which has now been fixed by the Assessing Officer at 4%. - AO has committed an error by adopting an Adhoc percentage. - Matter remanded back. Reversal of credit towards interstate sales without C forms - Held that:- AO directed to comply with the direction issued by the revisional authority viz., the Joint Commissioner (CT) - W.P.No.6966 of 2016 and W.M.P.No.6182 of 2016 - - - Dated:- 13-6-2016 - Mr. JUSTICE T.S.SIVAGNANAM For the Petitioner : Mr. R. Kumar For the Respondent : Mr. Manokaran Sundaram, A.G.P., ORDER Heard Mr.R.Kumar, learned counsel appearing for the petitioner and Mr.Manokaran Sundaram, learned Additional Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner (CT), Vellore Division. The Writ Petition filed by the petitioner was heard by this Court along with a batch of cases and this Court had disposed of the matter by a common order dated 26.11.2014. So far as the manner and method by which the Assessing Officer ascertained the quantum and loss of goods was considered and it was held as follows: 63. In the result, (1)... (2)... (3) For the reasons assigned, it is not sufficient for a dealer claiming refund under Section 18(2) of the Act to show that he has paid input tax on the goods purchased; that those goods are used in the manufacture and nothing more but there is duty upon the dealer to satisfy the Assessing Authority that the claim is not hit by any of the restrictions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n adhoc percentage while calculating the invisible loss of the inputs. Therefore, the Assessing Officer was required to go into the manufacturing process which may require inspection of the factory premises to see the nature of activity done by them. 5. After the writ petition was disposed of, the respondent had issued a notice dated 28.09.2015 for which the petitioner had submitted their reply on 16.11.2015. Thereafter, the respondent proposed to consider the same. In the show cause notice, apart from the issue relating to invisible loss, the petitioner was also called upon to explain as regards the proposal to reverse the ITC on purchase of Furnace Oil used as fuel and also with regard to reversal of ITC towards inter-state sales witho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture and the Annexure-III should be read along with Section 19(9) and in their case, the inputs were not destroyed before manufacture. 8. The respondent while considering the said issue has referred to a decision in the case of M/s.Perfect Wheels (P) Ltd., Gurgoan v. State of Haryana - (2014) 49 PHT 371 (HTT) FB. It is brought to the notice of this Court by the learned counsel for the petitioner though in the impugned order of assessment, it is stated that the said decision is a decision of the Punjab and Haryana High Court, the copy of the judgment produced would reveal that it is a judgment of a three judge bench of Haryana Tax Tribunal at Chandigarh and not that of the High Court. 9. Be that as it may, the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the petitioner by referring to the decision of the Haryana Tax Tribunal. It is pointed out by the learned counsel appearing for the petitioner that the description of the product as per Schedule E of the Haryana Value Added Tax Act, which reads out the goods which are eligible for ITC, the description of goods is petroleum products and the circumstances in which Input Tax shall be nil is when used as a fuel. It is submitted that there is a difference between the entries in schedule A of Haryana Value Added Tax Act and the description of goods as per serial no.67 of the first schedule to Tamil Nadu Value Added Tax Act, which describes industrial inputs which includes consumables. Therefore, it is the case of the petitioner that the F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtaining to the issue nos.1 and 2 viz., ''Invisible loss in the process of manufacture'' and ''Reversal of ITC on purchase of Furnace Oil used as fuel'' are remitted back to the respondent for fresh consideration, with a direction to the respondent to conduct an inspection of the petitioner's factory, get himself acquainted with the manufacturing process, then consider the objections placed by the petitioner and thereafter, take a decision in accordance with law. With regard to the reversal of ITC towards interstate sales without C forms, the respondent is directed to comply with the order passed by the Joint Commissioner (CT), Vellore Division in his order dated 03.05.2016 made in R.P.No.51/2015. Consequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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