THE COMMISSIONER Vs. S/S. HERO MOTORS LTD.

JUDGEMENT

(1.) By the instant revision, the revenue is assailing the order dated 27 January 2017 passed by the Commercial Tax Tribunal, Noida in Second Appeal No. 50/2017, whereby, appeal of the dealer was allowed granting benefit of input tax credit (ITC).

(2.) The facts of the case would reveal that for the assessment year 2011-12 under the provisions of U.P. Value Added Tax Act, the dealer who is carrying on the business of manufacture and sale of auto mobile, had purchased emery paper and lubricant oil and claimed input tax credit (ITC) as capital goods. Assessing Authority under Section 2F of the Act was of the opinion that the items would not fall in the category of capital goods, hence, ITC claimed by the dealer was reversed. The order of the Assessing Authority was affirmed in first appeal, however, by the impugned order the learned Tribunal has allowed the appeal of the dealer and has granted benefit of ITC treating it not as a capital goods but as a consumable, though it was never claimed by the assessee in the return as consumable.

(3.) Learned standing counsel would not dispute that the dealer was entitled to claim ITC on the goods even as a consumable goods though in the return it has been shown as capital goods.