TMI Blog2019 (12) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of production, location and plant where the capital goods are used and commodity code. To what use the Assessing Officer intends to put these details are unknown till the order of assessment is actually received by the assessee. Though opportunity has been extended, it can hardly be said to be effective in the present case. The prevailing position in law is to the effect that an assessee is entitled to ITC pro rata on capital goods used both in the manufacture of taxable as well as exempt commodities. This aspect of the matter requires adjudication by the Officer. The impugned assessment order is thus set aside in the light of the fact that this position has neither been effectively captured or dealt with by the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quantum required to ensure continuous production at 100% capacity is approximately 6000 KW of power for running furnaces and casting machines and the power requirement in respect of rolling mills is 8200 KVA. The manufacturing processes are said to be integrated and dependent on maintenance of heat as an essential element of the process itself. A power cut resulting in loss of heat, renders the products lying at interim state to be wasted in full. 3. Thus and particularly in view of the power cuts imposed by the State, the petitioner invested in a Captive Power Plant (CPP) to ensure continuous supply of electricity. The major components of CPP are (i) a turbine, run by engine and (ii) a boiler operated by coal firing mechan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f goods exempted under section 15. 6 . The earlier notices merely call for details of the capital goods purchased, that have been duly furnished by the assessee. Merely calling for details, both factual as well as numerical by the Officer and production of those details by the petitioner do not advance the process of assessment itself as it is only when the Officer crystalises the issue that he proposes to raise that the assessee can be said to be put to notice and effectively be afforded an opportunity to respond. 7. In the present case, the pre-assessment notices dated 24.06.2014 and 31.07.2014 call for details of nature of capital goods purchased, date of commencement of production, location an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as added to Section 19(6) to the effect that ITC on the purchase of capital goods used in the manufacture of both exempt and taxable goods shall be allowed prorata. 11. Thus, the prevailing position in law is to the effect that an assessee is entitled to ITC pro rata on capital goods used both in the manufacture of taxable as well as exempt commodities. This aspect of the matter requires adjudication by the Officer. The impugned assessment order is thus set aside in the light of the fact that this position has neither been effectively captured or dealt with by the Assessing Officer in the impugned order nor for the reason that the pre-assessment proposals issued prior to completion of assessment do not put this issue for re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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