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2022 (9) TMI 559 - HC - VAT and Sales TaxValidity of assessment order - input tax credit - raw rubber purchases made at the stage of last purchase within the State of Tripura in respect of the purchases made from unregistered dealer - assessment years 2013-14 and 2016-2017 - HELD THAT:- The TVAT Act, 2004 provided for and Section-3 thereof specifically required every dealer engaged in the purchase of taxable goods mentioned in the Schedule VIII liable to be VAT in accordance with the provisions of the TVAT Act, 2004. While section 5 of the TVAT Act, 2004 dealt with the “Levy of Tax on Sale”. Section 5A of the TVAT Act, 2004 which is a charging section in respect of the levy of tax on purchase. Section 5A clearly provides that the tax payable by a dealer under Section 3(1)(a)(iii) shall be levied at the gross taxable purchase of goods as mentioned in the Schedule VIII. There is no dispute that the raw rubber purchased by the petitioner is a good falling under Schedule VIII. More importantly, Section 10 of the TVAT Act also prescribes that Input Tax Credit claim shall be applicable to all taxable purchase of goods as mentioned in Schedule VIII. Even insofar as the statute is concerned, clearly the TVAT Act has made distinction between purchases made from registered and unregistered dealers. Undisputedly, purchases made from registered dealers required the Input Tax credit to produce a tax invoice. But, in so far as purchase of goods under Schedule VIII is concerned, no such stipulation was stipulated that only some purchases made from registered dealer alone would be qualified for the benefit of input tax - there is no bar on the petitioner from effective purchases from unregistered dealers of items covered under Schedule VIII inasmuch as the legislative wisdom of the State and it was considered by the State to be appropriate to collect tax from the purchasers of such goods rather than on the sellers. Consequently, if a purchaser of such goods has made the deposit of purchase tax under the TVAT Act, 2004 clearly such amount deposited by the purchaser would make the petitioner entitled to seek credit on input tax for all such purchases provided the necessity of the requirement of law insofar as deposit of purchase tax is concerned is complied with. Matter remanded to the Assessing Officer who is directed to approach the matter afresh and re-compute the input tax credit benefit that the petitioner may be entitled to and thereafter to conclude the fresh assessment proceeding within a period of 6 months - petition allowed by way of remand.
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