TaxTMI 
TaxTMI 
2016 (7) TMI 1306
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....OR THE RESPONDENT : MR SN SOPARKAR, SENIOR COUNSEL with MR GAURAV S MATHUR, ADVOCATE, MR SN SOPARKAR, SENIOR COUNSEL with MR BS SOPARKAR, ADVOCATE COMMON ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. All the above Tax Appeals are the Appeals filed by the State. Special Civil Application No.459/2016 was listed on the Board on 25.07.2016 but today the said matter is not listed. However, since the facts in Special Civil Application No.459/2016 are akin to the above matters, the same is taken up for hearing today. 2. While admitting the Tax Appeals No.251/2013 and 252/2013 on 08.08.2013 and 856/2013 on 04.10.2013, the following substantial question of law was framed for consideration and determination by this Court : ....
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....)(iii) of the Act on purchase of furnace oil used as fuel?" 5. The brief facts which give rise to Tax Appeals No.251/2013, 252/2013 and 856/2013 are as under :- 5.1. The respondents herein are registered dealers under the Gujarat Value Added Tax Act, 2003 and also under the Central Sales Tax Act, 1956. The respondents of Tax Appeals No.251/2013 and 252/2013 are doing business of manufacturing of sponge iron, ferrochrome, ferro manganese and other steel products whereas the respondent in Tax Appeal No.856/2013 is doing the business of manufacturing of Pig Iron, using Iron Ore, Lime Stonex, Dolomite and Lam Coal. 5.2. The respondents had filed an application U/s. 80 of the Gujarat Value Added Tax Act, 2003, before the Joint Commissio....
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....ness of manufacture and sale of sponge iron, i.e. hot briquetted iron and holds registration certificates under the Gujarat Value Added Tax Act, 2003 as well as the Central Sales Tax Act, 1956. 7.1. During the assessment for the period from 2006-2007, the Deputy Commissioner of Commercial Tax, Corporate-2, Ahmedabad u/s. 34 of the Gujarat Value Added Tax Act, 2003 held that natural gas and coke was used as fuel in the manufacture of goods and hence, the admissible input tax credit relating to the purchases of natural gas and coke was reduced by 4% of the purchase price by relying upon the provisions contained in Section 11(3)(b) (iii) of the above Act. The respondent thereby preferred a first appeal before the Joint Commissioner of Comme....
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....es in ST Appeal No.4/2006. 10. Learned Counsel for the respondent/s have relied on the decision of this Court in Tax Appeals No.968/2015 and allied matters dated 08.03.2016 and relevant paragraphs of the said decision reads as under :- "10. From the process described hereinabove, it is evident that insofar as fuel is concerned, the vertical shaft is heated through external electricity heater. Insofar as the use of pet coke in the manufacture of cement is concerned, the same is mixed with lime stone, silica, red oxide and bauxite in definite proportion as per the formula. The mixture is then crushed into a homogeneous powder which is then heated in a vertical shaft kiln, wherein an exothermic reaction takes place and the powder i....
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....tity and forms part of the end product. Essentially, therefore, pet coke forms one of the ingredients of cement and merely because there is an exothermic reaction in the preparation of cement which may be facilitated by its presence, pet coke would not cease to be a raw material." 10.1. Learned Counsel for the respondent/s have also placed reliance on the decision of the Bombay High Court in the case of Additional Commissioner of Sales Tax, VAT-1, Mumbai v. Gupta Metallics & Power Ltd. reported in [2012] 54 VST 292 (Bom) wherein it was held that the report in question clearly indicated that to convert iron ore into sponge iron the non-coking coal is used, that the mixture of iron ore and noncoking coal when heated from outside would ulti....
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....llics & Power Ltd. (supra), we are of the view that the issue/s raised in the above Appeals are now squarely covered by the above decisions. Consequently, the issues are answered in favour of the assessee/s and against the Department. All the Appeals stand disposed of in the aforesaid terms. ORDER IN SPECIAL CIVIL APPLICATION NO.459/2016 This Writ petition was filed since it was a revision before the Tribunal and not an Appeal. The facts are identical and therefore, they are not reproduced. RULE returnable forthwith. Learned Advocate appearing for the respondent waives service of notice of Rule. This petition is filed with the following main prayers :- "(B) YOUR LORDSHIPS may be pleased to issue writ of certiorari or any o....