Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + SC VAT and Sales Tax - 2016 (2) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 436 - SC - VAT and Sales TaxRepayment schedule of deferred tax scheme after conversion of sales tax scheme to value added tax (VAT) scheme - Exemption (deferment of sales tax) scheme was not available after the Jharkhand Value Added Tax Act, 2005 (JVAT Act) came into force - Principle of promissory estoppel - Held that:- The concept of exemption is distinct from the concept of deferment of tax. After the JVAT Act came into force, under the statutory provisions, there was no exemption and beneficiaries were entitled to convert to the scheme of deferment. The period remains intact, that is, 8 years. The repayment has to be done in equal six monthly instalments and that period is 5 years. The repayment commences after completion of eligibility period of deferment or the prescribed percentage limit of fixed capital investment, whichever is earlier. The prescribed authority can grant an eligibility certificate but he has to keep in view the terms and conditions stipulated in the notification. The said authority cannot travel beyond the stipulations of the notification. The language employed in the notification conveys that the grant of certificate has to be such that after expiration of the eligibility period, the amount has to be paid back within a span of 5 years but the gap cannot exceed 13 years from the date of start of deferment. In the case at hand, the claim of the assessee that the repayment schedule has to continue for a period of 13 years from 2006, for the deferment commenced only in 2006. Such an interpretation not only causes serious violence to the language employed in the notification but if it is allowed to be understood in such a manner, it shall lead to an absurd situation. That apart, the intention can be gathered from the notification that it has to relate back to the date of eligibility with a maximum limit of 13 years. It cannot be construed to mean 13 years from the date of completion of the eligibility period. The repayment schedule is 5 years from the expiry of eligibility period of deferment. The period of 5 years has to be so arranged that it does not go beyond 13 years from the date of deferment. Thus analysed, the irresistible conclusion is that the repayment schedule has to end on 31.08.2013 within a span of 5 years from the expiration of the eligibility period. Imposition of interest and penalty under the JVAT Act. Rule 66 - the question of levy of penalty as envisaged under Rule 66 of the Rules should not be made applicable to the case at hand. - assessee shall pay 12% interest per annum (and not 2.5% per month) - Decided partly in favor of Revenue.
|