TaxTMI 
TaxTMI 
2018 (4) TMI 209
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....Products (P) Ltd., dealers in manufacturing of SS Utensils, were assessed on a total and taxable turnover of Rs. 1,14,66,984/- and Rs. 7,37,967/-, for the years 2007-2008 and Rs. 23,67,420/- for the year 2008-2009 respectively, under the VAT Act, by the Commercial Tax Officer, T.Nagar (South) Assessment Circle, vide proceedings, dated 29.01.2010, under Section 22(2) of the Tamil Nadu Value Added Tax Act, 2006. Subsequently, VAT Audit was conducted by the Enforcement Wing Officers, during the period from 08.12.2009 to 14.12.2009, at the place of business and they noticed difference in the value of purchase and sale of scrap. Based on the above, the Assessing Officer has revised the assessment, reversing the ITC of Rs. 21,179/- and Rs. 44,984....
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.... order, dated 18.09.2014, made in S.T.A.Nos.207 and 208 of 2013, the Tribunal held as follows:- "Admittedly the respondent is manufacturer of S.S.Utensils. The respondent purchased the raw materials from other states and within the state for manufacture. While in the manufacturing process scrap will arise during the course of manufacturing activities. Admittedly the respondent sold the utensils and Scraps as first seller and collected tax. Further the respondent remitted tax to the department adjusting the ITC. The respondent had not sold the scrap at zero value. Therefore on sale of such scrap the respondent is entitled to claim ITC. Further the Audit officials had not found any purchase suppression or sales suppression. They found neg....
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....e circumstances of the case the Tribunal was right in law in holding that no provision has been prescribed under the Act for reversal of ITC on the sale of scrap which is sold to some consideration when the provision under Section 24(i) of the Act contemplate the re-assessment of turnover of dealer when the sale of goods sold at prices which are abnormally compared to the prevailing market rate of such goods? 2) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in not considering the fact that the claim of huge ITC accumulation by the respondent is for the reason of wantonly reporting the lesser sale value of the product in the name of scrap and therefore by virtue of Section 24(i) of the Act, the As....
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....reference to purchase or sales suppression, but only with the accumulation of ITC, by wrongly reporting lesser sale value in the name of scrap. 9. Learned Additional Government Pleader (Taxes) submitted that the Tribunal erred in holding that no order has been passed by the audit officials, on the request made by the dealer, as order passed was available at page 123 of the assessment file. But the figures arrived at, were as per Section 19(9)(iii) of VAT Act and also with reference to the balance sheet. Therefore, he submitted that it cannot be said that the scrap sold by the dealer is not at zero value. Heard the learned counsel appearing for the parties and perused the materials available on record. 10. Section 19(9) of the Tamil Nadu ....