Indirect Tax August 2021

Recent Rulings by Courts and Authorities

High Court Rulings

No reversal of ITC required in relation to loss arising from manufacturing process

In the case of ARS Steels & Alloy International Private Limited vs. State Tax Officer, Group– I, Inspection, Intelligence – I, Chennai, [2021 (6) TMI 957- Madras High Court], the petitioner was engaged in the manufacture of MS billets and ingots, with an inherent loss of inputs in the manufacturing process. An assessment order was passed against the petitioner seeking reversal of ITC on account of inputs lost in the manufacturing process in terms of Section 17(5)(h) of the CGST Act, which specifically disallows ITC on “goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples”.

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