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2017 (8) TMI 7 - HC - VAT and Sales TaxJurisdiction - input tax credit - sale of taxable goods as well as on exempted goods - Whether under the facts and circumstances of the present case the Rajasthan Tax Board has not exceeded its jurisdiction in giving directions to the petitioners to appear before the Commissioner, Commercial Taxes, Rajasthan, Jaipur on 14.02.2013 by invoking provisions of Section 85 of the Rajasthan Value Added Tax Act, 2003? - Held that: - this court held that the input tax credit could not be allowed to the extent of sale of VAT exempted goods, namely, wheat bran (Chaff/Chokar), which had been assessed by the Assessing Authority to the extent of 25% of the input tax credit and reverse tax has been imposed on the respondent-assessee and this Court allowed the claim of the revenue in the aforesaid case. There is a judgment of this Court in the case of Durgeshwari Foods Limited [2011 (12) TMI 654 - RAJASTHAN HIGH COURT] holding that the assessee was not entitled to claim Input Tax Credit or Input Tax Credit could not be allowed to the extent of sale of VAT exempted goods namely; wheat bran (Chaff/Chokar) which had been assessed by the Assessing Authority to the extent of 25% of the Input Tax Credit and reverse tax had been imposed on the respondent-assessee. Counsel for the petitioner also accepts that the finding of this Court in the case of Durgeshwari Foods Limited is squarely applicable on the facts of the instant case. Once this is an admitted fact that the judgment is squarely applicable even the Tax Board irrespective of directing the Commissioner in my view, could have directed that in the light of the judgment in the case of Durgeshwari Foods Limited, the claim was not required to be allowed and for the purposes of calculating as to how much input tax credit is to be allowed/disallowed, the matter could have been restored back to the Assessing Officer. The powers of the Tax Board are wide enough. On perusal of section 83 quoted herein before and sub-section (10) of section 83 states that the Tax Board after opportunity of being heard shall pass such order “as it thinks fit” which in my view, gives power to the Tax Board even to direct the Commissioner u/Sec. 85 to revise an order. In my view, even the inherent power is available with the Tax Board to pass an appropriate order “as it thinks fit” which would mean even directing the Commissioner u/Sec.85 to pass an appropriate order. Admittedly, the Commissioner is an Authority subordinate to the Tax Board and the Tax Board can certainly give directions to correct a wrong undone in the matter. The directions given by the Tax Board to the Commissioner cannot be said to be contrary to the provisions of the Act and the Tax Board was within its competence to give certain directions. Once it is an admitted fact that the judgment of this Court in the case of Durgeshwari Foods Ltd governs the case, it is binding upon all the Subordinate Authorities and particularly when the matter was pending before the Tax Board and the judgment of this Court was available by the time when the appeal came up for hearing before the Tax Board. Appeal dismissed - decided against assessee.
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