- (1.) The appellant has filed the present appeal arising out of the order dated 4.12.2015, passed by the Value Added Tax Tribunal, Punjab (for short, 'the Tribunal'), raising the following substantial questions of law: "(i) Whether on the facts and in the circumstances of the case, the appellant is entitled for input tax credit on the tax paid by it under the Punjab VAT Act 2005 on the purchases of pet coke where it is used for generation of electrical energy for captive consumption (ii) Whether on the facts and in the circumstances of the case, the restrictions mentioned in Section 13(5)(i) read with Section 13(4) are applicable on the purchase of pet coke (iii) Whether on the facts and in the circumstances of the case, the impugned order is violative of principles of natural justice as all the issues raised before the Tribunal have not been dealt in the order (iv) Whether on the facts and in the circumstances of the case, the clarification issued by the Ld. Commissioner in the case of Avon Ispat and Power Ltd. is applicable to the present case -
(2.) However, we find that only the following question of law arises for determination by this court: "(i) Whether on the facts and in the circumstances of the case, the appellant is entitled for input tax credit on the tax paid by it under the Punjab VAT Act 2005 on the purchases of pet coke where it is used for generation of electrical energy for captive consumption - Learned counsel for the appellant submitted that the appellant is a manufacturer of paper and paper products. Its factory is situated at Fatehgarh Road, Amritsar. During the course of manufacturing process, the appellant uses various raw materials including waste paper, chemicals, packing material and pet coke. The goods manufactured by the appellant are either sold during the course of intra-state or inter-state trade. Pet coke is purchased by the appellant for generation of power for captive consumption. Value added tax is paid thereon @ 4.5% with surcharge @ 10% thereon. As the appellant is entitled to input tax credit on pet coke used in generation of power for captive consumption in terms of the provisions of Section 13 of the Punjab Value Added Tax Act, 2005 (for short, 'the Act'), however, with a view to avoid any ambiguity later on, a clarification was sought vide application dated 16.12.2012 filed under Section 85 of the Act to the Excise and Taxation Commissioner for clarifying the issue regarding entitlement of the appellant to input tax credit on the transactions, as referred to above.
(3.) The Excise and Taxation Commissioner, vide order dated 26.4.2014, clarified that the appellant will not be entitled to benefit of input tax credit as the same is available on the goods mentioned in Section 13(4) of the Act. The order was challenged before the Tribunal, who vide its order dated 4.12.2015 dismissed the appeal relying upon an earlier judgment of this court in State of Punjab and others v. Malwa Cotton & Spinning Mills Ltd., 2011 39 VST 65 (P&H). While impugning the orders passed by the Excise & Taxation Commissioner as well as the Tribunal, learned counsel for the appellant submitted that the provisions of Section 13 of the Act, which provide for input tax credit, are quite explicit. Section 13(5)(i) of the Act clearly provides that on the goods used for generation of power for captive consumption, input tax credit is available. The only exceptions are provided for in Section 13(5)(b) of the Act and with reference to the amount of tax and goods on which input tax credit can be claimed are mentioned in Section 13(4) of the Act. He further submitted that there is already a clarification issued by the Excise & Taxation Commissioner in the case of Avon Ispat and Power Ltd., Ludhiana on 2.12.2011 regarding entitlement of full input tax credit on heavy petroleum stock. In that case, the Excise & Taxation Commissioner opined that the dealer shall be entitled to full input tax credit of the entry tax paid thereon as it is not one of the goods mentioned in Section 13(4) or 13(5)(b) of the Act. He further submitted that the said clarification has neither been withdrawn nor superseded till date.;