STATE OF GUJARAT Vs. JAYANT AGRO ORGANICS LTD.

JUDGEMENT

(1.) These three appeals, preferred by the State of Gujarat, under Section 78 of the Gujarat Value Added Tax Act, 2003 for three different Assessment Years involved following substantial questions of law, which were framed at the time of admission of the appeals:

(2.) Since the respondent-company was using the entire purchase of castor oil seeds for production of castor oil, it claims input tax credit under the provisions of Section 11 of the Gujarat Value Added Tax Act, 2003 ("VAT Act', for short).

(3.) The Assessing Authority initially processed and adjusted the tax paid by the respondent company against the purchases of castor oil seeds. However, the reassessment was done on the ground that waste - de-oil cake, was used by the respondent-company as a fuel for the process of manufacturing the castor oil itself. After considering the submissions made by the company, the re-assessment orders were passed against the company and it was held that the company would not be entitled for input tax credit to the proportion of the waste used by the company or the manufacturer and would be liable to pay tax under Section 11(3)(b)(iii) since the same was used as fuel. The re- assessment orders were made for three years and therefore three appeals were filed by the company before the Joint Commissioner of Commercial Tax, Vadodara. The appeals came to be dismissed by the Joint Commissioner of Commercial Tax, Vadodara on the ground that the order of pre-deposit for hearing the appeals was not complied with by the company. The said decision was challenged by the company by filing second appeal before the Gujarat Value Added Tax Tribunal, Ahmedabad. The respective parties appeared before the Tribunal and agreed for the matters to be decided on merits. Hence, the appeals were decided on merits in favour of the respondent company and the order passed by the Assessing Officer came to be quashed and set aside. Hence, these appeals.