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2014 (3) TMI 440 - HC - VAT and Sales TaxDisallowance of input credit under DVAT – transfer of right to use - VAT authority was of the opinion that such input credit was not permissible as the cars have not been resold and only effective control and possession had been transferred to the customers and, therefore, it does not constitute resale in unmodified form. - Waiver of pre-deposit - Held that:- In Carzonrent case [2013 (1) TMI 580 - DELHI HIGH COURT], identical issues and all related questions were dealt with and the submissions of the Revenue was rejected decisively. The Tribunal’s impugned order relies upon Section 9 (9). To this Court’s mind, the understanding of the Tribunal as to its applicability appears to have been based upon a misreading of judgment passed in Carzonrent The omission to enact a similar provision in respect of different categories of sale transactions on the one hand, and the enactment of Section 2 (zd) (iii) which specifically deals with sale price in respect of transfer of the right to use, coupled with Section 2 (zm) ("turnover") - turnover is aggregate of sale price, point to legislative deliberation that the theory of proportionality sought to be propounded by the revenue - accepted by the Tribunal, has no statutory basis - Once the legislature entitles the assessee to a certain benefit of input credit, and puts in place a mechanism for working it out, which expressly provides one kind of proportional input credit, to a class of transactions - it is not permissible for the Court to read into the statute another such proportional rule, without statutory sanction Ex facie, the view of the Tribunal with regard to the disallowance of input tax credit appears to be incorrect. - the order rejecting the application for waiver of pre-deposit is set aside - Matter remitted back to Tribunal – Decided in favour of assessee.
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