Contrary decision in recent AAR

Jay Chemicals Industries Ltd. [Advance Ruling no. Guj/Gaar/R/101/2020(A.A.R. – GST – Gujarat)]

In this case the Gujarat AAR, has ruled that where applicant is engaged in manufacturing and marketing of dyes and dye intermediates and dye intermediates are either sold by applicant in market or consumed in manufacture of its finished goods, i.e., dyes and a fire broke out in warehouse of applicant and dye intermediates were destroyed, applicant is required to reverse input tax credit taken on inputs used in manufacture of dye intermediates and input tax credit taken on input services used in manufacture of dye intermediates.

To read the complete judgment 2020 Taxo.online 1059