Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2022 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 309 - HC - VAT and Sales TaxBenefit of set off of tax paid on raw materials - Manufacture of iron and steel goods - ambiguity in the Finance Department Notification bearing No.14687-CTA-37/2001 (Pt.) F. (SRO No.149/2001) dated 31.03.2001 - entitlement to claim set off of tax on purchase of raw materials separately indicated on the body of the bill/invoice - scope and authority of Rule 19 of the Orissa Entry Tax Rule, 1999 - validity of claim of set off of entry tax as made by the opposite party - HELD THAT:- The language of Note (i) being unambiguous, there was no scope for the expression ‘selling dealer’ to include any selling dealer not limited to the immediate selling dealer vis-à-vis the Assessee. The purpose of Note (i) was clearly to imply only the person from whom the Assessee purchased the raw materials and not any previous seller. There was no scope for expanding the expression ‘selling dealer’ to include any selling dealer previous to the involved in a transaction previous to the transaction. Consequently, the Court is not able to agree with the approach of the Tribunal in an interpretation of Note 1. On a collective reading of Clauses (i) and (iii) of Note 2, it is plain that the set off has to be only proportionate to the actual raw material used in production of the finished products of that particular financial year. The approach of the STO as affirmed by the ACST and the interpretation placed on the above clause appears to be correct. Here again, the Court is unable to concur with the view expressed by the Tribunal. Issue answered in favour of the Revenue and against the Assessee.
|