TaxTMI 
TaxTMI 
2021 (7) TMI 341
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....in these matters is to orders of assessment passed under the provisions of the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) for the periods 2008-09 to 2012-13 dated 09.02.2021 and 2011-12 to 2016-17 dated 04.03.2020. 2. The only issue that arises relates to the reversal of input tax credit (ITC) in terms of Section 19(9) sub-clause (iii) dealing with inputs damaged in transit or destroyed at some intermediary stage of manufacture. I have had occasion to deal with this very issue in the context of the Tamil Nadu General Sales Tax Act, 1959 and by order dated 24.06.2021 in ARS Steels & Alloy International Pvt . Ltd. Vs. The State Tax Officer (W.P.No.2885 of 2020), have held as follows: ............ 6. The petitioners ....
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....d such goods and that the goods have actually been delivered Provided further that the tax deferred under section 32shall be deemed to have been paid under this Act for the purpose of this subsection............ (8) No input tax credit shall be allowed to any registered dealer in respect of any goods purchased by him for sale but given away by him by way of free sample or gift or goods consumed for personal use. (9) No input tax credit shall be available to a registered dealer for tax paid Omitted [or Payable] at the time of purchase of goods, if such- (i) goods are not sold because of any theft, loss or destruction, for any reason, including natural calamity. If a dealer has already availed input tax credit again....
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....ditions or alterations or repairs, to the extent of capitalisation, to the said immovable property; (e) goods or services or both on which tax has been paid under section 10; (f) goods or services or both received by a non-resident taxable person except on goods imported by him; (g) goods or services or both used for personal consumption; (h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and (i) any tax paid in accordance with the provisions of sections 74, 129 and 130. 10. The impugned assessment orders reject a portion of ITC claimed, invoking the provisions of clause (h) extracted above. This relates to goods lost, stolen W.P. Nos.2885 of 20....
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....: 13. To say that what is contained in finished product is only a quantity of all the inputs of the same weight as that of the finished product would presuppose that all manufacturing processes would never have an inherent loss in the process of manufacture. The expression 'inputs of such finished product', 'contained in finished products' cannot be looked at theoretically with its semantics. It has to be understood in the context of what a manufacturing process is. If there is no dispute about the fact that every manufacturing process would automatically result in some kind of a loss such as evaporation, creation of by-products, etc., the total quantity of inputs that went into the making of the finished product re....