https://www.taxtmi.com/caselaws?id=188313 Section 18 of the Rajasthan Value Added Tax Act, 2003 permits input tax credit only to the extent goods are used for taxable purposes and requires proportionate reduction where they are used partly for exempt output. Where wheat purchased for manufacture of taxable products also yielded exempt wheat bran as a by-product, full credit was not available and proportionate disallowance was upheld because the statutory scheme contained an apportionment mechanism. On penalty under Section 61, a debatable interpretation of the credit provision and a bona fide claim were held insufficient to establish deliberate false return or mala fide conduct, so penalty was not justified. en-us Thu, 08 Dec 2011 00:00:00 +0530 Fri, 24 Mar 2017 14:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188313 Section 18 of the Rajasthan Value Added Tax Act, 2003 permits input tax credit only to the extent goods are used for taxable purposes and requires proportionate reduction where they are used partly for exempt output. Where wheat purchased for manufacture of taxable products also yielded exempt wheat bran as a by-product, full credit was not available and proportionate disallowance was upheld because the statutory scheme contained an apportionment mechanism. On penalty under Section 61, a debatable interpretation of the credit provision and a bona fide claim were held insufficient to establish deliberate false return or mala fide conduct, so penalty was not justified. Case-Laws VAT and Sales Tax Thu, 08 Dec 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188313