TaxTMI 
TaxTMI 
2011 (9) TMI 513
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....rocurement of various petroleum products from outside Karnataka by way of imports and interstate purchases and from within Karnataka by way of local purchases. The petroleum products so procured are disposed by way of sale locally or in the course of interstate trade or commerce and to some extent by way of stock transfer to its own depots located outside Karnataka. One of the major petroleum products dealt by the assessee in the State of Karnataka is Liquefied Petroleum Gas (LPG). The purchase of LPG locally by the assessee is insignificant compared to the quantity of LPG procured by the assessee by way of imports and interstate purchases put together. Out of the LPG so procured, large quantity of LPG is sold locally within the State of Karnataka and a small insignificant portion is sold in the course of inter-state trade or commerce or stocks transferred to the assessee's own depots located outside Karnataka. LPG is purchased by the assessee locally from the only one source i.e., Hindustan Petroleum Corporation Limited (HPCL), Mangalore, who is the marketing agent for Mangalore Refinery and Petrochemicals Limited (MRPL), Mangalore. From out of the local purchases of LPG from HPCL....
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....ing that there is one-to-one correlation between the purchase of LPG from M/s. Hindustan Petroleum Corporation Ltd, to that of the stock transfer of very same goods outside the State and therefore, held that the assessee to claim the benefit of input tax credit on the local registered dealer purchases of LPG corresponding to those stock transfers in accordance with the provisions of Section 11(a)(5) read with Section 14 of the Act. He further held that the Deputy Commissioner was not justified in applying the provisions of Section 17 of the Act read with Rule 131 of the KVAT Rules, 2005 and restricting the input tax credit and accordingly, the appeal was partly allowed. The Additional Commissioner of Commercial Taxes invoking his power under Section 64(1) of the Act proposed to revise the order passed by the joint Commissioner on the ground that the same is erroneous and prejudicial to the interest of the revenue and a notice was issued to the assessee, wherein the assessee appeared before him and opposed the Said action. However, he proceeded to pass an order setting aside the order of the Joint Commissioner and restored the order passed by the Original Authority. Aggrieved by the....
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....at the Appellate Authority has held as follows: "On perusal of the copies of purchase bills, stock transfer memos, hire charges paid to transporters, etc., produced by the appellant for having purchased LPG from M/s. Hindustan Petroleum Corporation Ltd., and thereafter stock transferred outside the State, it is noticed that the appellant after purchasing LPG from M/s Petroleum corporation Ltd., which is transported in a Tanker the same has been diverted to outside the State other than by way of sale which is evident from the Tanker number mentioned in the purchase bill raised by M/s. Hindustan Petroleum Corporation Ltd., and also the Tanker number mentioned the Stock Transfer Memos raised by the appellant for dispatching the goods outside the State by way of stock transfer. The period between purchase of LPG from M/s Hindustan Petroleum Corporation Ltd, and dispatch of the same by way of stock transfer is almost one and the same. Furthermore, for having transported the LPG by engaging the Tankers, the appellant has filed returns under the Service Tax Act admitting hire charges paid to the transporters and service tax paid thereon, a copy of which is submitted for record purpose. F....
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....going through the records produced before him. Though the Revisional Authority has the jurisdiction to interfere with such orders if they are to be prejudicial to the interest of the revenue but before exercising of that power, the ingredients mentioned in the Section are to be satisfied. In Para 4, we get the reasons interference. "That he has verified evidences of local purchases of tax paid LPG and stock transfer of such LPG outside the state and thereby Section 11(a)(5) read with, section 14 would apply. He has not recorded individual transactions linking with stock transfers/inter purchases/imports outside the state. In the appeal order and there are no such evidences in the appeal records also." If the Revisional Authority has looked into the very same records which are looked into by the Appellate Authority and if, he has recorded a finding that there is no one-to-one correlation between the purchase and stock transfer of the very same goods outside the State, then we would not have interfered with the said order passed by the Revisional Authority, The Appellate Authority categorically states that he has looked into the copies of purchase bills, stock transfer memos, hire ch....