https://www.taxtmi.com/caselaws?id=395635 Input tax credit under the Tamil Nadu Value Added Tax Act could not be reversed for inputs merely consumed in manufacture as invisible loss. The court read "inputs destroyed at some intermediary stage of manufacture" to cover only inputs withdrawn from production, rendered incapable of further use, and sold as scrap or physically destroyed with no residual value. On that interpretation, manufacturing loss in the course of producing the final product did not justify reversal, and the demand could not be sustained to that extent. The same principle also excluded reversal for goods traded as such where the statutory condition of intermediary-stage destruction was not met. en-us Fri, 28 Feb 2020 00:00:00 +0530 Wed, 18 Nov 2020 12:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=395635 Input tax credit under the Tamil Nadu Value Added Tax Act could not be reversed for inputs merely consumed in manufacture as invisible loss. The court read "inputs destroyed at some intermediary stage of manufacture" to cover only inputs withdrawn from production, rendered incapable of further use, and sold as scrap or physically destroyed with no residual value. On that interpretation, manufacturing loss in the course of producing the final product did not justify reversal, and the demand could not be sustained to that extent. The same principle also excluded reversal for goods traded as such where the statutory condition of intermediary-stage destruction was not met. Case-Laws VAT and Sales Tax Fri, 28 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=395635