TaxTMI 
TaxTMI 
2016 (6) TMI 905
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....en up for final disposal. 2.The petitioner is a registered dealer under the provisions of the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) and also under the provisions of the Central Sales Tax Act, 1956 (CST Act). The petitioner is engaged in the manufacturing of the TMT bars and has effected local sales, inter-state sales and has effected stock transfer to the branch situated in Kerala. The order impugned in the Writ Petition is the order of assessment for the year 2008-09. The petitioner was assessed with a total taxable income of Rs. 19,46,61,231/- and Rs. 19,49,61,231/- respectively for the year 2008-2009 under the provisions of the TNVAT Act by proceedings dated 28.02.2014 and the input tax credit was reversed with regard to wa....
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....o embark upon the fact finding exercise to ascertain the quantum of loss of the goods which were purchased on which tax was paid vis-a-vis the goods manufactured from and out of the goods purchased and to examined as to whether they fall within any of the restrictions contained in Section 19 of the VAT Act. The Assessing officer has to conduct an exercise by which it is to be ascertained as to whether the representation made by the dealer is justified and is not hit by any of the restrictions and conditions contained in Section 19 and in particular Section 19(9) of the VAT Act. (4) It is held that the Assessing Authorities are not justified in adopting uniform percentage as invisible loss and calling upon the dealer to reverse the input ....
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.... On perusal of the impugned order it is seen that the once again the Assessing Officer has fixed the percentage of invisible loss in the process of manufacture at 4%. However, there is no reasoning assigned as to how 4% has been adopted and it is only a adhoc estimation which was frowned upon by this Court in the earlier order. 6. So far as the reversal of ITC on purchase of Furnace Oil is concerned, the petitioner's case is that in their manufacturing activity, the Furnace Oil is an essential input material for melting the scrap. It is used as an input for manufacture and it is not damaged in transit or destroyed. The petitioner referred to the definition of input as defined under Section 2(23) of the TNVAT Act and contended that....
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....versal of Input Tax Credit on Furnace Oil is confirmed. As already noticed, there is also a direction to reverse ITC towards inter-state sales without C forms. Thus, three issues arise for consideration, namely, 1. Invisible loss in the process of manufacture 2. Reversal of ITC on purchase of Furnace Oil used as fuel 3. Reversal of ITC towards inter-state sales without C forms 10. With regard to the first issue, inspite of the earlier direction issued by this Court (referred supra), once again the Assessing Officer has committed an error by adopting an Adhoc percentage. The Assessing Officer has not made any endeavor to ascertain as to whether the representation made by the dealer is justifiable or not. The Assessing Officer did....
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....given effect to from 29.01.2016 which refers to inputs damaged during intermediary stage of manufacture and this entry was not there prior to 29.01.2016. Hence, these issues have to be considered by the respondent and the reliance placed on the decision of the Haryana Tax Tribunal is misconceived, as it will not apply to the facts and circumstances of the present case. Accordingly, the finding rendered with regard to the reversal of ITC on purchase of Furnace Oil used as fuel is set aside. 13. The next issue is with regard to the reversal of ITC towards interstate sales without C forms. It is seen that as against the said issue, the petitioner had filed a revision petition in R.P.No.51/2015 before the Joint Commissioner (CT), Vellore Div....