JAINENDRA KUMAR RANKA,J. - (1.) Instant petition is directed against the order dated 05.12.2012 passed by the Rajsathan Tax Board, Ajmer (in short the 'Tax Board'). It relates to the assessment Year 2006-07.
(2.) The petition was admitted on the following substantial question of law which reads as under:- "Whether under the facts and circumstances of the present case the Rajasthan Tax Board has not exceeded its jurisdiction in giving directions to the petitioners to appear before the Commissioner, Commercial Taxes, Rajasthan, Jaipur on 14.02.2013 by invoking provisions of Section 85 of the Rajasthan Value Added Tax Act, 2003".
(3.) The Brief facts noticed are that the petitioner is carrying on the business of manufacturing Mustard Oil and Solvent Oil and is only effecting sales within the State but also inter-State sale in the course of business. On verification/examination of the returns for the second and third quarters of 2006-07 which was furnished in form VAT-10, it was noticed by the Assessing Officer that on purchase of Mustard seed and DOC (De Oiled cake), the assessee has claimed input tax credit after extraction of Solvent Oil Whereas under section 18 of the RVAT Act, the input tax credit can be claimed on sale of taxable goods only and on exempted goods and accordingly being satisfied with the claim of the assessee, a show cause notice was given by the Assessing Officer as to why input tax credit be disallowed. A detailed reply was filed on behalf of the assessee, however, the Assessing Officer being satisfied, allowed only input tax credit at Rs. 18,84,959/- and was disallowed to the extent of Rs. 20,50,517/-.;