SHREERAM AGRO LTD Vs. COMMISSIONER OF COMMERCIAL TAX

JUDGEMENT

(1.) Heard the learned counsel for the parties on I.A. No. 3599 of 2014, an application filed seeking disposal of the matter in the light of the judgments rendered by a coordinate Bench of this court. This appeal has been admitted for considering the following substantial question of law:

(2.) The question of imposing liability on proportionate basis and denying the entire set-off with regard to the credit available on the purchase of raw material has been considered by this court in the case of Ruchi Soya Industries Limited v. State of M.P., 2014 70 VST 40 (M.P.) and the Division Bench of this court after considering various judgments of the Supreme Court in para 13 has crystallized the legal principles in the following manner (pages 46 and 47 in 70 VST):

(3.) From the aforesaid analysis of law, it is clear that the manufacturer is eligible for the benefit of set-off on the entire amount of tax paid on purchase of raw material and the principle of proportionate liability has been found to be unsustainable.