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2018 (9) TMI 2 - HC - VAT and Sales TaxWhether the estimation done on the basis of the value shown in the Delivery Note is correct, especially when the Delivery Note discloses the value as stipulated by the Commissioner for payment of advance tax? - Held that:- It is submitted that as per the Circular of the Commissioner it is mandated that Delivery Notes show the sale value of goods for the purpose of payment of advance tax. Even if the said contention is accepted, the assessee was obliged to produce the invoices showing the sales having been carried out at a lower price. There was absolutely no evidence produced before the Assessing Officer or the Appellate Authorities to substantiate such contention - the addition made on interstate purchase at the GP as computed by the Assessing Officer is sustained. Whether the Tribunal was justified in sustaining the estimation on the local purchases when there was not even a single evasion or undervaluation detected with respect to such local purchase and sales? - Held that:- Though a explanation was put forth for reason of there being no substantiating evidence, we have declined deletion of addition with respect to interstate purchases; despite which it is to be noticed that the explanation was a plausible one - there being no evidence to indicate a suppression of local purchases, the addition made on that count is not proper - decided in favor of assessee. Denial of input tax credit - Held that:- Input tax credit is a concession permitted to avoid the cascading effect in a value added tax regime. What is paid as tax at an earlier instance has to be set off in the later instance, wherein the taxation is only on the value addition - The State is deprived of the tax to that extent and hence there is no question of input tax credit. The assessee could definitely file a suit for recovery from the entity from whom they made the purchase. Having not received the tax at the first instance of sale, there is no obligation on the State to grant input tax credit - Decided in favor of Revenue. The revision is partly allowed.
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