TMI Blog2021 (7) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... y consumption of input which is inherent to manufacturing loss is misconceived, as such loss is not contemplated or covered by the situations adumbrated under Section 17(5)(h). The only difference between the matters covered by the above order and the present matters would be that the impugned orders in these matters are passed under the provisions of the TNVAT Act. The applicable provisions, Section 17(5)(h) of the TNGST Act and Section 19(9)(iii) of the TNVAT Act are in pari materia - petition allowed. - W.P. Nos.590, 595, 593, 594, 596, 591, 7663, 7668, 7670, 7664 & 7667 of 2021 And WMP.Nos.657, 8187, 8183, 8185, 8189 & 8191 of 2021 - - - Dated:- 30-6-2021 - Honourable Dr. Justice Anita Sumanth For the Petitioner : Mr.B.Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, the erstwhile Tamil Nadu Value Added Tax Act, 2006 (in short 'TNVAT Act') contained an equivalent provision in Section 19 thereof, which deals with various situations arising from the grant and reversal of ITC. Section 19 (1) grants eligibility to ITC of the amount of tax paid under the TNVAT Act by a registered dealer. It sets out situations where such ITC shall be denied as well. 8. The provisions of Section 19, as relevant for the issue dealt with in these matters, are extracted below: 19. Input tax credit .- (1) There shall be input tax credit of the amount of tax paid Omitted [or Payable] under this Act, by the registered dealer to the seller on his purchases of taxable goods specified in the First Schedule: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITC claimed shall be restricted and read as follows: 17. Apportionment of credit and blocked credits. (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub section (1) of section 18, input tax credit shall not be available in respect of the following, namely:- ............. (c) works contract services when supplied for construction of an immovable property(other than plant and machinery) except where it is an input service for further supply of works contract service; (d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt decided a question of law in regard to the entitlement to Cenvat credit involving the measure of inputs used in the manufacturing process,in terms of the provisions of Section 9A and 2(g) of the CENVAT Credit Rules,2002. 13. In that case, a certain amount of input had been utilised by the assessee, whereas the input in the finished product was marginally less. The department proceeded to reverse the cenvat credit on the difference between the original quantity of input and the input in the finished product. 14. The Bench, noticing at paragraph 13 that some amount of consumption of the input was inevitable in the manufacturing process, held that cenvat credit should be granted on the original amount of input used notwithstandin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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