TMI Blog2019 (12) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... input tax is not available. The expression inputs destroyed at some intermediary stage of manufacture in sub Clause (iii) of Section 19(9)(iii) of TNVAT Act, 2006 will not take within its fold those inputs consumed in the manufacture of final product. Only when inputs are destroyed at some intermediary stage of manufacture , reversal of input tax credit is warranted. They would be instance of inputs which are withdrawn at an intermediary stage of manufacture and are incapable of being used further and are sold as scrap/waste or physically destroyed by an assessee having no residual value. Such inputs alone can be construed as inputs destroyed at some intermediary stage of manufacture - There is no scope for reversal of input tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and alone provision under the provisions of TNVAT Act but subject to other provisions of the Act including Section 19 of the VAT Act. (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 or conditions contained under Section 19 of the VAT Act. In this regard, it is essential for the Assessing Authority to embark upon the fact finding exercise to ascertain the quantum of loss of the goods which were purchased on which tax was paid vis-a-vis th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sanctioned when Section 18 cannot be treated as an independent provision but subject to restrictions and conditions under Section 19 of the VAT Act. 4.The Writ Petition is disposed in terms of the above decision of this Court referred to supra. There is no provision under the TNVAT Act, 2006, to call upon a dealer who is a manufacture to reverse credit on invisible loss of input in the course of manufacture of final product. TNVAT Rules, 2007 also does not speak about input-output norm. Further, Rules also do not contemplate 100% assimilation of inputs into final products. Section 19(9)(i), (ii) (iii) of TNVAT Act, 2006 only deals with three situation when input tax is not available. They are as follows:- (9) No input tax credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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