No Reversal of ITC on normal loss of inputs during manufacturing process

  • Home
  • No Reversal of ITC on normal loss of inputs during manufacturing process

Studycafe | Jul 5, 2021 | Views 739883

No Reversal of ITC on normal loss of inputs during manufacturing process

No Reversal of ITC on normal loss of inputs during manufacturing process

Facts

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.

Order

In the light of the discussion as above, I am of the view that the reversal of ITC involving Section 17(5)(h) by the revenue, in cases of loss by consumption of input which is inherent to manufacturing loss is misconceived, as such loss is not contemplated or covered by the situations adumbrated under Section 17(5)(h).

Join Studycafe's What's App Group or Telegram Channel for Latest Updates on Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"




Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement
Advertisement Banner 2

Studycafe Articles

Submit your Articles with us by Clicking Submit Article Button

Submit Article

you can also submit your articles by sending mail at [email protected]

Studycafe Articles

Submit your Articles with us by Clicking Submit Article Button

Submit Article

you can also submit your articles by sending mail at [email protected]