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2017 (2) TMI 1132 - HC - VAT and Sales TaxInterpretation of statute - Section 9(2)(g) of of DVAT Act - The input credit claims were disallowed by the VATO with the rationale that the firm’s registrations had been cancelled and default assessment of tax and interest under Section 32 of the Act were completed - Held that: - The proviso creates an exception where tax is deferred or deferrable under any Package Scheme of Incentives implemented by the State Government. In that event a deeming fiction is created by the proviso under which the tax is deemed to have been received in the Government treasury for the purposes of the subsection. In all other cases, an actual deposit of taxes is mandated before a set off is allowed” - In the present case, the VAT Act is silent; Section 9(2) (g) was introduced only with effect from 1-4-2010 - Section 9(1) which grants input credit to purchasing dealers to an extent is controlled by Section 9(2) that lists specific situations where benefit can be denied - appeal dismissed - decided against Revenue.
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