BASANT ENGINEERING Vs. STATE OF TRIPURA AND ORS.

JUDGEMENT

(1.) All these writ petitions are being disposed of by a common judgment since the parties involved are the same and the issues involved are also identical. The petitioner before us is M/s. Basant Engineering, the manufacturing unit of Basant Cables and Conductors Pvt. Ltd. As per averments made in this case, M/s. Basant Engineering Manufactures Conductors and M/s. Basant Cables & Conductors Pvt. Ltd. is the marketing arm of the company. Both have been registered separately. The petitioner had filed assessment for the years 1996 -97 to 2004 -05 which were reopened vide notice dated January 22, 2005. The case of the Revenue was that as per the books of the petitioner after tallying the opening stock of raw materials the additional purchase of raw material, other incidental charges, etc., the stock transfer to the manufacturing arm, i.e., M/s. Basant Cables & Conductors Pvt. Ltd. was less than the total amount of production in all the years.

(2.) The case of the petitioner before the assessing authority was that the difference in the value of production, i.e., the short -fall in the value of production as reflected in the assessment notice was due to the fact that the petitioner had taken Cenvat credit in respect to the raw material on which it had paid excise. Therefore, it was stated that this Cenvat credit is the only difference in the cost of production and there is no actual difference because if this is taken into account than the cost of production is as reflected by the assessee.

(3.) The assessing officer held that the excise paid on the raw materials was also part of the cost of production and therefore it cannot be deleted from the same and must be included in the cost of production. The petitioner filed appeals and the appellate authority, i.e., the Assistant Commissioner of Taxes dismissed the appeals with regard to the years 2003 -04 and 2004 -05 but partly allowed all the other appeals filed by the present petitioner and held as follows: