TaxTMI 
TaxTMI 
2025 (1) TMI 730
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....ision:- "(i) Whether on the facts and circumstances of the case the tribunal was correct in not adjudicating the issue that the assessing officer did not have the jurisdiction to travel beyond the specific order of remand by the appellate authority when he was bound by the direction made in the appellate order dated 24.10.2019. (ii) Whether having regard to the language of the remand order of the appellate authority, the assessing authorities was competent to examine the same issue afresh and redetermine the question about reversal of ITC closing stock of Lubricant as on 10.01.2014, which has become final between the parties, especially when the department did not challenge the remand order dated 24.10.2019, before Tribunal. (iii) Whether the tribunal was correct to affirm the orders of the authorities below applying the Commissioner's Circular number 1314115 dt. 20.01.2014 which is not binding on the assessee especially when the remand order has already attained finality. (iv) Whether in the alternative, the tribunal was correct hold that ITC on the closing stock in lubricant 10.01.2014 as per Notification N.KA. NI-2-42/XI-9(1)/2008-UPAct-5-2008- order-(108)-2014 dated....
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....fter remand of the matter, instead of complying with the specific direction, the assessing authority has passed the order dated 31.10.2020 in violation of the directions issued. 8. He further submits that section 13(1)(a) of the VAT Act does not contemplate reversal of ITC, nor rule 21(q) of the Rules framed under the VAT Act contemplates the same. He further submits that when the lubricant was purchased, it was VATable goods and therefore, merely because of notification dated 10.01.2014, where the same has become non VAT goods for traders, will not disentitle the revisionist from claiming ITC, which was paid while purchasing the same. 9. He further submits that section 13(1)(a) and Rule 21(q) do not give any power to the authorities to reverse the ITC and therefore, the orders passed by the authorities below are bad. He further submits that the circular dated 17.01.2014 does not authorize the authority for reversal of ITC, but the same has wrongly been done without following the due procedure of law. 10. In support of his submissions, he has relied upon the judgements of this Court as well as the Apex Court in M/s Guru Nanak Brick Fields Vs. CST [1987 UPTC 512], CST Vs. Babu La....
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.... of the VAT Act reads as under:- (1) Subject to provisions of this Act, dealers referred to in the following clauses and holding valid registration certificate under this Act, shall, in respect of taxable goods purchased from within the State and mentioned in such clauses, subject to conditions given therein and such other conditions and restrictions as may be prescribed, be allowed credit of an amount, as input tax credit, to the extent provided by or under the relevant clause: (a) Subject to conditions given in column 2, every dealer liable to pay tax, shall, in respect of all taxable goods except non-vat goods, capital goods and captive power plant, where such taxable goods are purchased on or after the date of commencement of this Act, be allowed credit of the amount, as input tax credit, to the extent provided in column 3 of the table below: S/No. Conditions. Conditions Extent of amount of input tax credit. 1 If purchased goods are re-sold- (i) inside the State, or (ii) in the course of inter-state trade or commerce; or (iii) in the course of the export of the goods out of the territory of India. Full amount of input tax 17. Bare reading of the aforesaid provision....
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....any goods, uses, consumes, disposes of or dispossesses such goods in a manner in which he either is not entitled to claim any amount of input tax credit or is entitled to claim input tax credit of an amount which is lesser than the amount of input tax, shall compute amount of reverse input tax credit in respect of such goods. (2) Amount of reverse input tax credit, in respect of any quantity or measure of any goods in respect of which a trader has not been entitled to claim any amount as input tax credit, shall be equal to the amount of input tax in respect of such quantity or measure of such goods. (3) Amount of reverse input tax credit, in respect of any quantity or measure of any goods which have been consigned by the trader outside the State otherwise than by reason of an inter-State sale, shall be computed using the expression; PxR/100 Where, in respect of quantity or measure of goods consigned outside the State:- (i) P is the purchase price, according to the tax invoice or purchase invoice in respect of which input tax credit has been claimed of full amount of input tax; and (ii) R is rate provided under sub-section (1) of section 8 of Central Sales Tax Act, 1956."....
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....ए जाने की दशा में 21 प्रतिशत की दर से अवधारित की गयी है। उक्त के संबंध में लुब्रीकेन्ट्स का जो स्टाक दिनांक 10.1.2014 को संबंधित व्यापारियों के पास आरम्भिक स्टाक के रूप में था उसकी बिक्री किए जाने पर करदेयता की स्थित....
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....िसी पंजीकृत व्यापारी के की गयी, उसके पास जो दिनांक 10-1-2014 के आरम्भ में स्टाक है उसके संबंध में वस्तुस्थिति यह है कि ऐसा व्यापारी उ०प्र० मूल्य संवर्धित कर अधिनियम, 2008 की धारा-2 की उपधारा (u) में परिभाषित "Manufacturer" की परिधि में....
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....1; पंजीकृत व्यापारियों से क्रय किए गए लुब्रीकेन्ट के उपलब्ध स्टाक की अग्रेतर बिक्री की जाएगी तो उस लुब्रीकेन्ट पर उपर्युक्त शासकीय अधिसूचना दिनांक 10-1-2014 द्वारा अवधारित करदेयता के बिन्दु के परिप्रेक्ष्य मे&#....
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....प्राविधानों से स्वतः स्पष्ट है। " 23. The aforesaid circular provides that with effect from 10.01.2014, the lubricant become VATable goods only at the hand of the manufacturer or importer. Further, so far as trader is concerned, it becomes non VATable goods at their end. 24. Therefore, on the above law and the circular, the present controversy is to be looked into. 25. It is admitted between the parties that the dispute is with regard to reversal of ITC to the tune of Rs. 29,81,445/-. The thrust of the argument made on behalf of the revisionist that by order dated 24.10.2019, the first appellate authority remanded the matter with certain directions and the assessing authority, being subordinate to the Additional Commissioner is bound by such directions. For the conveyance, the relevant part of the order dated 24.10.2019 is quoted below: अपीलकर्ता द्वारा सुनवाई के समë....
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....5; पर आई०टी०सी० देय नहीं रह जाती है। अपीलार्थी द्वारा मेरे समक्ष उपस्थित होकर अपील मेमो में देय तथ्यों को दोहराया एवं कहा गया कि कर निर्धारण अधिकारी द्वारा उक्त देय आधार पर आई०टी०सी० रिवर्स की गयी है। दिनाæ....
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....ारण करमुक्त हो जाती है। अपीलार्थी का कथन है कि लुब्रीकेन्ट पहले भी करयोग्य था जब वैट के अन्तर्गत था बाद में नॉनवैट गुडस की श्रेणी में आ जाने पर भी करमुक्त की श्रेणी में नहीं है । दिनॉक 11.01.2014 से लुब्रीकेन्ट को अनु....
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....ेश अपास्त किया जाता है तथा कर निर्धारण आदेश पारित करते समय अपीलार्थी से दि० 10.01.2014 को लुब्रीकेन्ट के अन्तिम स्टाक को गणना चार्ट के अनुसार ऑकलित आर०आई०टी०सी० को समाप्त करने की कार्यवाही उपरोक्त निर्देशों के अ....
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....सुनवाई का पर्याप्त अवसर देते हुए आर०आई०टी०सी० के सम्बन्ध में विस्तृत जांचोपरांत विधिसम्यक आदेश पारित करना सुनिश्चित करें। 26. Bare perusal of the aforesaid order clearly shows that the contentions raised by the revisionist were noted and at the bottom of the order, while remanding the matter, it was directed that after detailed inquiry, to pass an order in accordance with law. This makes it clear that while remanding the matter, the issue was open for the assessing authority to make detail inquiry and then, pass an order in accordance with law. 27. The learned counsel....