https://www.taxtmi.com/caselaws?id=160513 Tax rebate on cotton seeds used in manufacturing oil could not be reduced merely because a tax-free by-product also emerged, unless the facts allowed segregation of the quantity used for taxable and non-taxable outputs. The text explains that the earlier Supreme Court-based approach in Bharat Petroleum Corporation Ltd. had accepted full statutory relief where goods purchased on tax were used in manufacturing taxable goods for sale, and concurrent use for another tax-free item did not by itself justify pro rata restriction. The contrary Tribunal view was treated as a misreading of that principle, making the refusal of full rebate and adoption of proportionate relief unsustainable; the matter was therefore remitted for fresh decision by a speaking order. en-us Wed, 21 Mar 2001 00:00:00 +0530 Thu, 19 Dec 2013 14:56:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=160513 Tax rebate on cotton seeds used in manufacturing oil could not be reduced merely because a tax-free by-product also emerged, unless the facts allowed segregation of the quantity used for taxable and non-taxable outputs. The text explains that the earlier Supreme Court-based approach in Bharat Petroleum Corporation Ltd. had accepted full statutory relief where goods purchased on tax were used in manufacturing taxable goods for sale, and concurrent use for another tax-free item did not by itself justify pro rata restriction. The contrary Tribunal view was treated as a misreading of that principle, making the refusal of full rebate and adoption of proportionate relief unsustainable; the matter was therefore remitted for fresh decision by a speaking order. Case-Laws VAT and Sales Tax Wed, 21 Mar 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=160513