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2014 (5) TMI 573 - HC - VAT and Sales TaxClaim of input tax credit/set-off – Hawala transactions – Publication prior to F.I.R. - Initiation of proceedings u/s 73 of the MVAT Act, 2002 - The Assessee was confronted with 13 purchase invoices and stated that these bills were given to him by agents in the market and were accounted in the purchase register for the claim of input tax credit - Held that:- Judgment in M/s. Mahalaxmi Cotton Ginning Pressing and Oil Industries, Kolhapur. Versus The State of Maharashtra & Ors. [2012 (5) TMI 152 - BOMBAY HIGH COURT] followed – At least seven of the 34 vendors whose invoices were relied upon by the Asseesse to claim input tax credit were bogus entities - There were no deliveries of goods or actual sales and bogus invoices were raised to get input tax credit - The publication by the State on the web-site falls within the enabling provisions of Section 73(1) - Electronic filing by the Department was put into place to promote greater transparency in and efficient handling of claims for input tax credit. This Court had recorded a statement of AG in Mahalaxmi Cotton (supra) where it was made clear that envisaged modalities were not to apply to transactions by dealers where the certificate/invoice is not genuine (including hawala transactions), no set-off should be granted to the dealer claiming to be a purchaser - The assessee cannot possibly assert that its assessment in accordance with law must be deferred until an assessment is carried out in the first instance against hawala dealers - The assessee has no case whatsoever to make such an assertion - The State is justified in taking necessary steps to complete the assessment in accordance with law – The court is satisfied from the disclosures made by the Government in the affidavits that steps are being taken by the State for pursuing the remedies lawfully open even against the hawala dealers - A web of complex transactions has been put into place to defraud the revenue and in the course of this judgement, it is not intended to circumscribe in any manner whatsoever the full range of powers vested in the State Government through its Department for ensuring that due steps are taken to curb or as the case may be deal with hawala transactions which pose a serious threat to the revenue of the State - No merit found - The petition is dismissed – Decided against Assessee.
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