COMMISSIONER, COMMERCIAL TAX Vs. EASTMAN AGRO MILLS LTD
HIGH COURT OF UTTARAKHAND
COMMISSIONER, COMMERCIAL TAX
Eastman Agro Mills Ltd.
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Barin Ghosh, .J. -
(1.) ALL these revisions address the same issue arising out of provisional assessments made for four different months; October, November, December, 2005 and January, 2006 and, accordingly, they are taken up together and decided by this judgment and order. The principal issue in these revisions was, whether the assessee was required to manufacture and, thereupon, to keep separate the product manufactured by using rice bran obtained by the assessee from outside the State. In the instant case, the assessee procured rice bran from outside the State and, also, within the State. It paid VAT while procuring such rice bran. Under the Uttarakhand Value Added Tax Act, an assessee is entitled to purchase tax credit. This purchase tax credit is applicable in relation to goods purchased within the State, for which VAT is payable to the State. Therefore, the purchase tax credit, the assessee was entitled to in respect of that much of rice bran, it purchased from the State and not in respect of any tax paid on account of purchase of rice bran from outside the State. That being the situation, the question of the assessee keeping separate the manufacture as well as the product manufactured from rice bran procured by the assessee from outside the Sate in relation to its claim for purchase tax credit lost all importance altogether.
(2.) THE other issue was that the assessee, while manufacturing rice bran oil, was also producing de -oiled cake. It was contended that since de -oiled cake is being manufactured, which is exempted from VAT, the assessee is not entitled to purchase tax credit. The fact remains that the de -oiled cake is only a bye -product of the main product of the assessee, namely, rice bran oil. Assessee was not attempting to manufacture the de -oiled cake, but was attempting to manufacture rice bran oil. In the process of manufacturing rice bran oil, it was also manufacturing de -oiled cake. The product manufactured by the assessee was rice bran oil and, while selling the same, it was entitled to, under the Uttarakhand Value Added Tax Act, the purchase tax credit. That being the conclusion of the Tribunal, there is no scope of interference. The revisions fail and the same are dismissed.;
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