Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2015 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 1119 - HC - VAT and Sales TaxEntitlement for input tax credit (ITC) on Packing material - finished goods were stock transferred to other states - Assessing Authority ignored the Circular No. 46 dated 28.06.2008 - Held that:- while interpreting the Statute, ordinarily, this Court neither should add nor should omit any word in the language of Statute. Since transfer of stock to other States, other than by way of sale, is not being treated as inter-State sale in the State of Uttarakhand and petitioner company was never asked to pay Central Tax thereon, therefore, petitioner company cannot claim ITC, as a matter of right on stock transfer, other than by way of sale. Petitioner does not dispute that after issuance of subsequent Circular dated 23.01.2013, cases of other dealers, who were earlier granted benefit of ITC on packing material on stock transfer outside the State other than by sale, in the light of earlier Circular dated 28.06.2008, are now subject matter of re-assessment. Therefore, subsequent Circular dated 23.01.2013 seems to be in consonance with the correct mandate / interpretation of Section 6 of the Act and after issuance of subsequent Circular dated 23.01.2013 earlier Circular dated 28.06.2008 ceases to have any force. Whether proviso to sub Section (3) of Section (6) of the Act is hit by Articles 301 and 304 of the Constitution of India - Held that:- in the present case, State of Uttarakhand has not imposed any tax on the goods imported from outside the State rather Legislature, at its wisdom, has given extra benefit of ITC over 2% on the raw materials purchased, in the event of transfer of stock other than by way of sale. Therefore, giving extra benefit in favour of registered trader does not amount to violation of Articles 301 and 304 of the Constitution of India. - Decided against the petitioner
|