ASHWANI KUMAR MISHRA,J. - (1.) Revisionist is a registered dealer, who is engaged in the manufacturing of MS Bar, MS Channel, MS Angle, MS flat, MS square and TMT Bar etc. and had purchased various raw materials, after paying tax vide tax invoice. Such raw material was utilised for manufacturing of the end commodity and thereafter such commodity was sold by the dealer vide sale invoice. It is not in dispute that tax collected at the time of sale has been duly deposited. The dealer claimed input tax credit for the amount of tax paid and the books of account were maintained accordingly. The authorities, however, have invoked the provisions contained under Section 14 of the U.P. Value Added Tax Act for reversal of input tax credit, particularly with reference to Rule 21(12) of the U.P. Value Added Tax Rules to deny benefit of input tax credit on the ground that since the sale of manufactured produce was not made vide tax invoice, as such the benefit of input tax would be inadmissible.
(2.) In order to appreciate the controversy, it would be relevant to take note of Section 2 (P) of the Act, which defines 'input tax', in following words:- "(p) "input tax" in relation to a registered dealer who has purchased any goods from within the State, means the aggregate of the amounts of tax, - (i) paid or payable by such registered dealer to the registered selling dealer of such goods in respect of purchase of such goods; and (ii) paid directly to the State Government by the purchasing dealer himself in respect of purchase of such goods where such purchasing dealer is liable to pay tax under this Act on the turnover of purchase of such goods Provided that tax paid or payable in respect of transfer of right to use any goods shall form part of the input tax".
(3.) Section 13 of the Act clearly provides vide item no.2 in the table forming its part that after purchase of the goods that are used in manufacturing of any taxable goods, except non-VAT goods and such manufactured goods are sold either inside the State or in the course of inter-State trade or commerce full amount of the input tax is admissible. In the facts of the present case, it is not in dispute that the purchased goods i.e. raw material was used in the manufacturing of taxable goods, and such manufactured goods are sold within the State and, therefore, the full amount of input tax under the statutory scheme was admissible to the revisionist.;