TMI Blog2020 (9) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... at Input Tax Credit cannot be disallowed on the ground that the seller has not paid tax to the Government, when the purchaser is able to prove that the seller has collected tax and issued invoices to the purchaser. As such, restriction of the amount of Input Tax Credit on this ground, cannot be sustained and requires re-consideration. Restriction of Input Tax Credit claim wastages - HELD THAT:- This Court in the case of M/S. SHRI RANGANATHAR VALVES PRIVATE LIMITED VERSUS THE ASSISTANT COMMISSIONER (CT) [ 2016 (12) TMI 510 - MADRAS HIGH COURT ] has held that To ascertain as to whether there are quantum of loss of goods, which were purchased, on which, tax was paid, the Assessing Officer has to conduct an exercise, by which, he has to as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C on goods. 3. Insofar as the restriction of the amount for prior sufferance of taxes, the Assessing Officer was of the view that some of the sellers from whom the petitioner had purchased the goods had not paid tax to the Government. This issue has been dealt with in the case of Assistant Commissioner (CT), presently Thiruverkadu Assessment Circle, Kolathur, Chennai Vs. Infiniti Wholesale Ltd., reported in [2017] 99 VST 341 (Mad), wherein it has held that Input Tax Credit cannot be disallowed on the ground that the seller has not paid tax to the Government, when the purchaser is able to prove that the seller has collected tax and issued invoices to the purchaser. As such, restriction of the amount of Input Tax Credit on this ground, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing 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 the goods manufactured from and out of the goods purchased and to examine as to whether they fall within any of the restrictions contained in Section 19 of the VAT Act. The assessing officer has to conduct an exercise by which it is to be ascertained as to whether the representation made by the dealer is justified and is not hit by any of the restrictions and conditions contained in Section 19 and in particular Section 19(9) of the VAT Act. (4) It is held that the assessing authorities are not justified in adopting uniform percentage as invisible loss and calling upon the dealer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the ground that the commodities were not exported is concerned, the petitioner's case is that those products are used in the manufacture of other goods, which are exported, as specified under Sub-Section (1) of Section 8 of the State Act and they are entitled to avail the input tax credit. However, the petitioner had no opportunity to put forth their objections on the above head . 6. In view of the decisions in Shri Ranganathar Valves (supra), it would be appropriate to call for objections of the petitioners in this regard. 7. In the light of the above findings, the impugned orders are set aside and the issue with regard to restriction of the amount of Input Tax Credit for prior sufferance of taxes is remanded back to the As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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