Input Tax Credit on DEPB-linked purchases sustained where concurrent factual findings could not be reopened in revision.

Input Tax Credit on purchases made under a DEPB licence was treated as available where the appellate authorities had accepted the assessee's claim on concurrent factual findings. The reasoning noted that DEPB scrips form part of the economic value of the imported commodity and may influence its market price. The revisional court was held unable to disturb those concurrent findings in the absence of a legal error, so reappraisal of the evidence was not warranted. The assessee's entitlement to Input Tax Credit was therefore sustained and the revision failed.

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Issues: Whether the assessee was entitled to Input Tax Credit on purchases made pursuant to a DEPB licence, and whether the revisional court could disturb the concurrent factual findings recorded by the appellate authorities.

Analysis: The purchases were found to have been made under a DEPB licence, and the Tribunal as well as the first appellate authority accepted the assessee's claim to Input Tax Credit on that basis. The reasoning adopted below was supported by the principle that DEPB scrips form part of the economic value of the imported commodity and may contribute, directly or indirectly, to its market price. In view of the concurrent findings of fact, no ground existed for reappraisal in revisional jurisdiction.

Conclusion: The assessee's entitlement to Input Tax Credit was upheld and the revision was dismissed.

Ratio Decidendi: Concurrent factual findings allowing Input Tax Credit on purchases linked to DEPB licences are not to be disturbed in revisional jurisdiction absent a legal error.

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