TMI Blog2016 (8) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... ided therein, whereas on the other goods, there would be no restriction as such for claiming the benefit of input tax credit, except those specifically mentioned in Section 13(5)(b) of the Act, namely, petrol, diesel, aviation turbine fuel, liquefied petroleum gas and condensed natural gas, as even many of those goods may be used in generation of power for captive consumption. The substantial question of law is answered in positive in favour of the assessee holding that the appellant shall be entitled to full input tax credit of the tax paid on purchase pet coke, where it is used for generation of power for captive consumption. - Decided in favor of assessee. - VATAP No. 12 of 2016 (O&M) - - - Dated:- 4-8-2016 - MR. RAJESH BINDAL AND ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for input tax credit on the tax paid by it under the Punjab VAT Act 2005 on the purchases of pet coke where it is used for generation of electrical energy for captive consumption? Learned counsel for the appellant submitted that the appellant is a manufacturer of paper and paper products. Its factory is situated at Fatehgarh Road, Amritsar. During the course of manufacturing process, the appellant uses various raw materials including waste paper, chemicals, packing material and pet coke. The goods manufactured by the appellant are either sold during the course of intra-state or inter-state trade. Pet coke is purchased by the appellant for generation of power for captive consumption. Value added tax is paid thereon @ 4.5% with surcharge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce to the amount of tax and goods on which input tax credit can be claimed are mentioned in Section 13(4) of the Act. He further submitted that there is already a clarification issued by the Excise Taxation Commissioner in the case of Avon Ispat and Power Ltd., Ludhiana on 2.12.2011 regarding entitlement of full input tax credit on heavy petroleum stock. In that case, the Excise Taxation Commissioner opined that the dealer shall be entitled to full input tax credit of the entry tax paid thereon as it is not one of the goods mentioned in Section 13(4) or 13(5)(b) of the Act. He further submitted that the said clarification has neither been withdrawn nor superseded till date. Further, the submission is that the judgment of this Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... processing or packing of taxable goods for sale within the State or in the course of inter- State trade or commerce or in the course of export: xx xx xx (4) Input tax credit on furnace oil, transformer oil, mineral turpentine oil, water methanol mixture, naphtha and lubricants, shall be allowed only to the extent by which the amount of tax paid in the State exceeds [five percent]: PROVIDED THAT these goods are used in production of taxable goods or captive generation of power. (5) A taxable person under this section, shall not qualify for input tax credit in respect of tax paid on purchase of,- xx xx xx (b) petrol, diesel, aviation turbine fuel, liquefied petroleum gas and condensed natural gas, unless the taxable person is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the tax paid on specified goods on purchase thereof. Clause (b) thereof provides that input tax credit is not available on purchase of petrol, diesel, aviation turbine fuel, liquefied petroleum gas and condensed natural gas, unless the taxable person is in the business of sale of such products. Clause (i) of sub-section (5) of the Act provides that even on the goods used in generation, distribution and transmission of electrical energy also input tax credit is not available, unless such generation, distribution and transmission of electrical energy is for captive consumption. In that case, the benefit is allowable subject to provisions of Section 13(4) of the Act. It is not in dispute that the goods purchased by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of goods to be used in captive generation of power has been extended in Section 13(5)(i) of the Act, the same has to be given full meaning. The only restriction is that the benefit has to be subject to the provisions of Section 13(4) of the Act. While harmoniously constructing both the provisions, the only conclusion which can be arrived is that on the goods specifically mentioned in Section 13(4) of the Act, the benefit shall be available to the extent provided therein, whereas on the other goods, there would be no restriction as such for claiming the benefit of input tax credit, except those specifically mentioned in Section 13(5)(b) of the Act, namely, petrol, diesel, aviation turbine fuel, liquefied petroleum gas and condensed nat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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