TMI Blog2022 (4) TMI 1101X X X X Extracts X X X X X X X X Extracts X X X X ..... chairs as scrap on which the tax were already paid. The authorities have made RITC on the ground that the purchased chair have not been sold in the same form and condition. The authoritie have lost sight of the fact that the revisionist is manufacturer of plastic chair as well as trader also. It is not in dispute that the plastic chairs which were purchased after payment of tax have been used for manufacturing of plastic chair. Once this fact has not been disputed, the authorities were not justified in reversing the ITC of the revisionist. Section 13 (1) (A) of VAT Act specifically provides that if the purchased goods are used in manufacturing of any taxable goods except non VAT goods and thereafter if, such manufactured goods are sold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 15.7.2019 on the following question of law:- Whether the assessee was entitled to avail ITC arising on the purchase of defective/damaged plastic chairs against the sale of plastic chairs manufactured by the assessee (from such tax paid against damaged plastic chairs)? 4. The revision No. 113 of 2020 was admitted by this Court vide order dated 23.11.2020 on the following questions of law:- 1. Whether on the fact and circumstances of the case the Commercial Tax Tribunal was legally justified in holding that the chairs purchased by the applicant which has been used to manufacture new chairs, the applicant is not entitled for Input Tax Credit and Reserved Input Tax Credit (RITC) has rightly been done under Section 13 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he chair purchased by the revisionist were used as raw material after making the said chairs as scrap on which the tax were already paid. The authorities have made RITC on the ground that the purchased chair have not been sold in the same form and condition. The authoritie have lost sight of the fact that the revisionist is manufacturer of plastic chair as well as trader also. It is not in dispute that the plastic chairs which were purchased after payment of tax have been used for manufacturing of plastic chair. Once this fact has not been disputed, the authorities were not justified in reversing the ITC of the revisionist. 8. Section 13 (1) (A) of the Act provides tables as under:- 13. Input tax credit- (1) Subject to provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h manufactured goods are sold either inside the State or in the course of inter-State trade or commerce. Full amount of input tax 9. After perusal of the table of clause 2 of the above mentioned Section which specifically provides that if the purchased goods are used in manufacturing of any taxable goods except non VAT goods and thereafter if, such manufactured goods are sold either inside the State or in the course of interstate trade or commerce, the full amount of input tax has to be given. 10. Admittedly, respondents dealer after purchase of chair used the same in manufacturing of new chair, then as per the above mentioned provisions/serial no. 2 of the table entitles full input tax credit to it. The s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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