2019 (12) TMI 66

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....it seeks to effect to the returned turnover. Specific queries have been raised, to which specific responses had been given by the petitioner. It is only in the impugned order of assessment that the Assessing Officer reveals what exactly he had in mind in regard to the proposed modification. 2. The assessee is a manufacture of steel and TMT bars and for the purpose of its business, purchased capital goods. The petitioner states that the quantum required to ensure continuous production at 100% capacity is approximately 6000 KW of power for running furnaces and casting machines and the power requirement in respect of rolling mills is 8200 KVA. The manufacturing processes are said to be integrated and dependent on maintenance of heat as a....

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.... Based on the details produced by the dealer it is clearly evident that the dealer have claimed input tax credit (ITC) for the capital goods which exclusively involved in power production i.e. exempted commodity and claimed ITC Rs. 23138459/- As per 19(6) of the TNVAT act, no ITC shall be allowed on purchase of capital goods, which are exclusively in the manufacture of goods exempted under section 15. 6. The earlier notices merely call for details of the capital goods purchased, that have been duly furnished by the assessee. Merely calling for details, both factual as well as numerical by the Officer and production of those details by the petitioner do not advance the process of assessment itself as it is only when the Officer....

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....t of ITC in respect of capital goods used in the manufacture of taxable goods and 19(6) denies the availment of ITC on purchase of capital goods, used exclusively in the manufacture of goods exempted under Section 15. It is only by Tamil Nadu Act 21 of 2007 with effect from 1.1.2007 that a proviso was added to Section 19(6) to the effect that ITC on the purchase of capital goods used in the manufacture of both exempt and taxable goods shall be allowed prorata. 11. Thus, the prevailing position in law is to the effect that an assessee is entitled to ITC pro rata on capital goods used both in the manufacture of taxable as well as exempt commodities. This aspect of the matter requires adjudication by the Officer. The impugned assessment ord....