TaxTMI 
TaxTMI 
2014 (10) TMI 1014
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....ar as input tax credit in respect of LPG stock transferred to places at outside the State from the Devanagunthi bottling plant. 2. The assessee is a Company incorporated under the Companies Act, 1956. It is a public sector undertaking of the Government of India. It is a dealer registered under Karnataka Value Added Tax Act, 2003 and other enactments. The assessee carries on business in the State of Karnataka as a Marketing Division of M/s. Indian Oil Corporation Ltd., for sales of petroleum products and liquefied petroleum gas - LPG - both domestic and industrial. LPG is procured by stock transfers from outside Karnataka, by local purchases from M/s. Hindustan Petroleum Corporation Ltd., Mangalore, by inter-State purchases from M/s. Reli....
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....versa. LPG - industrial and non - domestic purchased from the local registered dealer M/s. HPCL and filled into LPG cylinders at the Devanagunthi Bottling Plant to the full extent was sold locally to customers and there were no dispatches on stock transfer basis to places outside the State. Accordingly, the assessee claimed deduction of the full amount of input tax paid on LPG - industrial and non - domestic purchased from the local registered dealer M/s. HPCL. However, the assessing authority held that the assessee has procured petroleum products by way of stock transfers from outside the State, by local purchases from M/s. Hindustan Petroleum Corporation Ltd., Mangalore besides purchasing the petroleum products from M/s.Reliance Petroleum....
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....s considered the purchases made at these three bottling units also and generally applied the formula prescribed under Rule 131(3) of KVAT Rules, which is not correct. The assessing authority should have considered the purchases made by Devanagunthi bottling plant and applied the formula of Rule 131(3) for restricting the input tax credit paid not the bottling plants situated at Shimoga and Belgaum which did not effect any stock transfers. Therefore, the matter was remanded to the assessing authority for re-computation. Aggrieved by the said order, the assessee has preferred appeals before the Tribunal, which has confirmed the said finding. Aggrieved by this Judgment, the assessee is before this Court. 3. Learned Counsel for the assessee ....
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....KVAT Rules, 2006 that all the input tax paid on LPG - industrial & non - domestic purchased from the local registered dealer M/s. HPCL directly related to taxable sales of the LPG, and thus rendered the formula prescribed in rule 131 (3) inapplicable, the Karnataka Appellate Tribunal was justified and right in having held that the formula prescribed in rule 131 (3) of KVAT Rules, 2005 was applicable for calculating the non-deductible component of input tax and disallowing the same? 6. In view of the aforesaid facts and rival contentions in order to decide the questions of law which are framed in these petitions, there should not be any dispute of facts. The assessee contends from Devanagunthi bottling plant in respect of non domestic LPG....