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2021 (7) TMI 225 - HC - VAT and Sales TaxInput Tax Credit - failure to register as VAT dealer - Constitutional Validity of Section 17(3) and Section 49(2) of A.P. VAT Act, 2005 - Assessment Order passed an order imposing tax @ 12.5% as treating the petitioner as VAT dealer instead of imposing @ 1% tax treating as turnover tax dealer - HELD THAT:- Since the turnover of the petitioner for the 1st quarter ending 30.06.2006 was ₹ 13,14,724/- which exceeded ₹ 10 lakhs, the petitioner had an opportunity to apply for registration as VAT dealer - the petitioner should have applied before 15.07.2006 for VAT registration since the turnover for the 1st quarter ending 30.06.2006 exceeded ₹ 10 lakhs. He did not avail that opportunity but waited for completion of 12 months period. The total turnover for 12 months period from 01.04.2006 to 31.03.2007 was ₹ 43,47,418/-. As per the second leg of Section 17(3), he has to apply for VAT registration since the total turnover for 12 preceded months exceeded ₹ 40 lakhs. As per Rule-5 (b), he has to apply for VAT registration before 15.04.2007. However, he applied for VAT registration only on 18.05.2007 i.e., long after the expiry of stipulated period. Therefore, the 2nd respondent rightly rejected his claim and passed the impugned order directing the petitioner to pay VAT @ 12.5% and also treating him as VAT dealer - In the instant case, since the petitioner was liable to be registered as a VAT dealer, the 2nd respondent rightly levied the tax @ 12.5%. The petitioner cannot plead any illegality or irregularity in the order impugned. So also the petitioner cannot challenge the provision under Section 17(3) and Section 49(2) of A.P. VAT Act. There are no merits in the petitioner’s case - petition dismissed.
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