The Commissioner,Commercial Tax vs. S/S Modi Naturals LTD.
Held
The Court held that the benefit of input tax credit is a concession and must strictly comply with the conditions stipulated in the Act. The specific provision for cases where the sale price of manufactured goods is lower than the cost price, i.e., Section 13(1)(f), was applicable and not Section 13(3)(b).
Facts
The assessee claimed input tax credit for rice bran purchased and used in manufacturing rice bran oil and de-oiled rice bran. The assessing authority reversed a portion of this credit, leading to a dispute regarding the eligibility of the credit.
Key Issues
Whether the assessee was legally justified in claiming the full input tax credit when the sale price of the manufactured goods was lower than the cost price, and if Section 13(3)(b) could be applied in such a scenario.
Sections Cited
Section 13, Section 13(1)(f), Section 13(3)(b)
AI-generated summary — verify with the full judgment below
1 AFR RESERVED Commercial Tax Revision No.148 of 2018 The Commissioner of Commercial Tax, U.P., Lucknow Vs. M/s Modi Natural Ltd., Bisalpur Road, Bareilly Connected with Commercial Tax Revision No.315 of 2017 The Commissioner of Commercial Tax, U.P., Lucknow Vs. M/s Modi Natural Ltd., Bisalpur Road, Bareilly ***** Hon'ble Rohit Ranjan Agarwal, J.
Heard Sri Manish Goyal, learned Additional Advocate General along with Sri Bipin Kumar Pandey, learned Standing Counsel for the revisionist and Sri Rahul Agarwal, learned counsel for the respondent- assessee.
The question involved in both the revisions is common and by order dated 10.7.2018 Sales/Trade Tax Revision No.315 of 2017 was tagged with Sales/Trade Tax Revision No.148 of 2018. Thus, both the revisions are being heard and decided together.
Revision No.148 of 2018 has been filed challenging the judgment and order dated 5.7.2017 passed by the Commercial Tax Tribunal, Bareilly Bench Bareilly, while Revision No.315 of 2017 assails the judgment and order dated 4.5.2016, passed by the Commercial Tax Tribunal, Bareilly Bench, Bareilly.
The revision No.148 of 2018 was admitted on following question of law: “Whether unde
The judgment continues below.
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