BASANT OILS PVT. LTD. Vs. COMMISSIONER

JUDGEMENT

(1.) The present revision has been filed by the assessee for the assessment year 2012-13 (U.P.) under the U.P. VAT Act, 2008 (hereinafter referred to as "the Act"). The following two questions have been pressed by the learned counsel for the revisionist:-

(2.) Admittedly, the assessee is a registered dealer engaged in the manufacture and trade in mustard oil. While making the assessee's assessment for the assessment year 2012-13 (U.P.), vide assessment order dated 31.03.2017, he made addition to the undisclosed purchase of mustard seed and consequentially to the turnover of manufactured mustard oil manufactured therefrom. Insofar as, these additions that have been made, the assessee does not dispute the correctness of the same.

(3.) The grievance of the assessee is on two other counts. First, it has been submitted that the reversal of input tax credit (on intra-state purchase of mustard seed), had been wrongly made by the Assessing Officer, inasmuch as the assessee claimed to have maintained separate accounts for purchase of mustard seed from inside and outside U.P. He, therefore, submits that the input tax credit that had arisen to the assessee on purchases made inside the State of U.P. was fully verifiable and therefore allowable. In this regard, it has been submitted that Assessing Authority erred in reversing the input tax credit on the reasoning that the physical stock of mustard seed acquired from inside and outside the State was not maintained separately.