TNVAT: No reversal of ITC for input loss during manufacturing

R. K. Ganapathy Chettiar Vs Assistant Commissioner (ST) (Madras High Court) In that case, a certain amount of input had been utilised by the assessee, whereas the input in the finished product was marginally less. VAT department proceeded to reverse the cenvat credit on the difference between the original quantity of input and the input in the finished product. The Bench, noticing at paragraph 13 that some amount of consumption of the input was inevitable in the manufacturing process, held that cenvat credit should be granted on the original amount of input used notwithstanding that the entire...