IN THE HIGH COURT OF JUDICATURE AT MADRAS
Writ Petitions filed under Article 226 of the Constitution of India praying to issue Writ of Certiorari, to call for the records of the respondent in his proceedings in TIN 3323080006/2011-12, TIN 3323080006/2015-16, TIN 3323080006/2012-13, TIN 3323080006/2013-14 and TIN 3323080006/2014-15 respectively, quash the assessment order dated 08.06.2021 made therein.
W.P. Nos.14166, 14176, 14171, 14173 & 14175 of 2021 and WMP. Nos.15052, 15054, 15055, 15046 & 15051 of 2021
THE HIGH COURT OF JUDICATURE AT MADRAS
THE HONOURABLE DR. JUSTICE ANITA SUMANTH
W.P. Nos.14166, 14176, 14171, 14173 & 14175 of 2021
WMP. Nos.15052, 15054, 15055, 15046 & 15051 of 2021
Rep. by its Partner
138, Mathur Road,
Veeranampalayam, Kangeyam. ... Petitioner in all WPs
The Assistant Commissioner (ST),
Kangeyam Assessment Circle, Kangeyam. ... Respondent in all WPs
For Petitioner : Mr.R.L.Ramani, Senior Counsel
(in all WPs) for Mr.B.Raveendran
For Respondent : Mr.T.N.C.Kaushik
(in all WPs) Government Advocate
1. The above order has been passed in the context of TNVAT and would be applicable to the facts and legal position in this case as well. The sole distinction is that the commodity in that case was steel whereas the product in the present case is Ghee and this difference is not material.
2. The petitioners are engaged in the manufacture of MS Billets and Ingots. MS scrap is an input in the manufacture of MS Billets and the latter, in turn, constitutes an input for manufacture of TMT/CTD Bars. There is a loss of a small portion of the inputs, inherent to the manufacturing process. The impugned orders seek to reverse a portion of the ITC claimed by the petitioners, proportionate to the loss of the input, referring to the provisions of Section 17(5)(h) of the GST Act.
3. 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.
4.These writ petitions are allowed. No costs. Connected Miscellaneous Petitions are closed.
Please find attached the enclosed file for the full judgement