TaxTMI 
TaxTMI 
2024 (6) TMI 384
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....lage, ground loss, and during transportation? ii) Whether on the facts and circumstances of the case, the Tribunal was right in disallowing ITC as per Section 19 (1) of the KVAT Act? iii) Whether on the facts and circumstances of the case, Section 19 is applicable in the petitioner case? iv) Whether on the facts and circumstances of the case, the Tribunal was right in confirming the order of the audit authority and appellate authority? v) Whether on the facts and circumstances of the case, the words used in Section 19 (1) lost or destroyed is also applicable to normal loss, material loss due to spillage, grounds loss etc.? vi) Whether on the facts and circumstances of the case, the Tribunal was right in extending the provisions of Section 19 (1) to the normal loss, material loss due to spillage, grounds loss, etc.? vii) Whether on the facts and circumstances of the case, the Tribunal was right in not following the judgment rendered under the Central Excise Act? viii) Whether on the facts and circumstances of the case, the Tribunal was right in dissolving the ITC at 0.65% on wastage / loss due to spillage, handling, ground loss etc.? ix) Whether on the facts ....
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....age, which is normal in the course of business operations. Such losses having occurred in the course of the goods being used in the course of business operations, it cannot be construed as goods lost or destroyed so as to apply Section 19 (1) of the KVAT Act. Further submits that the provisions of Section 19 of KVAT Act can be invoked only when the goods are not used in the course of business. Where the goods are lost in the course of business, it cannot be held that goods are not used in the course of business or lost or destroyed to deny input tax credit. 9. Learned counsel for the petitioner, in support of his contentions, places reliance on the following judgments; i) State of Karnataka V/s Deccan Mining Syndicate Private Limited, Race Course road, Bangalore - 2021(101) KGST L.J. 231 (HC) (DB). ii) Interfit Techno Products Ltd., V/s Principal Secretary/Commissioner of Commercial Taxes, Ezhilagam, Chepauk, Chennai and another - (2015) 81 VST 389 (Mad). iii) Steel Authority of India Ltd V/s Collector of Central Excise - Appeal (Civil) 3406-11 of 1990. iv) M/s. Rupa & Company Limited, Tirupur V/s. The Customs, Excise & Service Tax Appellate Tribunal, Chennai-6 & anothe....
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.... on the prevailing market value of such goods at the time of change of use. (3) Where a registered dealer after deducting input tax on any goods used in the course of his business, opts for composition of tax under section 15, the input tax deducted on the goods held in stock on the date on which the dealer so opts shall be repayable by the dealer in the tax period following such date and the input tax so repayable shall be calculated on the market value of such goods on such date." 13. On plain reading of Section 19, it is clear that when a registered dealer has deducted input tax on any goods, and those goods are not used in the course of his business or lost or destroyed, input tax deducted is repayable. Section 19 (1) of the KVAT Act does not provide for any exception from repayment of input tax credit when the goods are not used in the course of business or lost or destroyed, with reference to any nature of business, circumstances or situation. It is settled position of law, while interpreting the fiscal statute, the provision has to be read on its plain text without reading in or reading out words. In the absence of Section 19 (1) of the KVAT Act providing any exceptions....
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....ent case, except the self-serving statement of the petitioner that loss of Iron ore due to transportation, handling, processing, ground loss was in the course of business, no other material is placed on record. Further, as seen from the replies filed by the petitioner, it is only on estimation on probabilities not a realistic loss. Even if it is held to be loss, on strict interpretation of Section 19 (1) of the KVAT Act, even if the goods are lost on which input tax credit is claimed, Section 19 (1) of the KVAT Act mandates to repay the said input tax credit without any just exceptions. 18. Section 19 (1), (2) and (9) of the Tamil Nadu Value Added Tax Act, 2006 (hereinafter referred to as "TNVAT Act" for short), reads as under; "19. Input tax credit (1) There shall be input tax credit of the amount of tax paid Omitted [or payable] under this Act, by the registered dealer to the seller on his purchases of taxable goods specified in the First Schedule: ... (2) Input tax credit shall be allowed for the purchase of goods made within the State from a registered dealer and which are for the purpose of- (i) re-sale by him within the State; or (ii) use as input in manufactu....