TNVAT Section 19(9) Doesn’t Apply to Inevitable Manufacturing Loss

Aruna Alloy Steel Private Limited Vs Assistant Commissioner (CT) (Madras High Court) The Madras High Court recently addressed a crucial aspect of the TNVAT Act regarding invisible loss in manufacturing. Aruna Alloy Steel Private Limited challenged an assessment order denying input tax credit on input lost during manufacture. The crux of the dispute revolved around the interpretation of Sections 19(2)(ii) and 19(9) of the TNVAT Act. The petitioner contended that input lost in manufacturing, termed invisible loss, should not attract Section 19(9). They cited a circular issued by the Commercial T...