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2019 (1) TMI 611 - HC - VAT and Sales TaxInput Tax Credit - assessee received incentives from its manufacturer - disallowance of the discount despite filing of credit notes and declaration as per Circular No. 41/2007 - applicability of instructions contained in Circular 41/2007 to dealers like the petitioner - failure to account the turnover - Held that:- Having gone through Form No. 9, we are of the opinion that it is not confined to a mere transaction of return of goods. Rule 59 and section 41 read together would only indicate that if a credit note is issued on return of goods, then it should be in Form No. 9. This is not to say that the form prescribed for credit note under the Act is exclusively for the purpose of return of goods. A reading of the form and the various details enumerated therein would also indicate that, the form would take in all instances where a credit note is issued, based on which a claim is raised by an assessee. The credit note having not been issued in the prescribed form, there is no question of an input tax credit being granted with respect to the incentive, as has been held by the AO. We are of the opinion that the Tribunal has rightly confirmed the order of the AO. The question of law with respect to Circular No. 41/2007 would not arise since the assessee had not made a claim with the prescribed form. Though the amounts were disclosed in the books of account, discrepancy was noticed in the audit statement and the petitioner did not attempt a revised return under section 42 of the Act - the questions of law raised are to be answered against the assessee and in favor of the Revenue.
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