https://www.taxtmi.com/caselaws?id=264161 Input tax rebate on raw material cannot be curtailed by applying proportionate liability merely because a by-product is also generated and sold. In the context of cotton seeds used to manufacture cotton seed oil, the Court stated that the assessee was entitled to set-off/input tax credit on the entire tax paid on purchase of the raw material, and that proportionate disallowance was not justified. The disallowance under Section 14 of the Madhya Pradesh Value Added Tax Act, 2002 was therefore unsustainable, and relief followed with refund to be granted in accordance with law. en-us Thu, 10 Apr 2014 00:00:00 +0530 Fri, 18 Sep 2015 10:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=264161 Input tax rebate on raw material cannot be curtailed by applying proportionate liability merely because a by-product is also generated and sold. In the context of cotton seeds used to manufacture cotton seed oil, the Court stated that the assessee was entitled to set-off/input tax credit on the entire tax paid on purchase of the raw material, and that proportionate disallowance was not justified. The disallowance under Section 14 of the Madhya Pradesh Value Added Tax Act, 2002 was therefore unsustainable, and relief followed with refund to be granted in accordance with law. Case-Laws VAT and Sales Tax Thu, 10 Apr 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=264161