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2019 (4) TMI 796 - HC - VAT and Sales TaxLevy of Entry Tax - whether the respondents can collect the entry tax based on the value of invoice which also includes the VAT? - Held that:- The import value means the value of goods specified in the Schedule as ascertained from the original invoice and includes the charges as specified therein i.e. insurance, excise duty, freight charges paid or payable. Thereafter it states that, and all other charges incidentally levied on the purchase of such goods which would also mean paid or payable. The question is as to whether the VAT which is included in the invoice though not taken as the invoice value as contained in the first part of the provision, would fall under the other charges incidentally levied on the purchase of such goods. The fact that the petitioner is liable to pay VAT on the crude oil purchase cannot be in dispute. If that be so, the issue is as to which of the points should be considered as the entry point when the purchase is made in the local area of Numaligarh. In the instant case, the fact of the entry of goods into the local area is not in dispute but the question is as to whether the entry point could be created at the point marked ‘A’ as per the diagram only to avoid the entry tax being levied including the VAT as indicated in the invoice when crude oil continues to pass through the pipeline without any check being made at point ‘A’. The point of delivery in the local area will have to be considered as the entry of goods to the local area. If that be the position, even if the contention that the processing is to be done at the refinery and only thereafter VAT would be payable is taken note of, the same is also incidental to the purchase, irrespective of the fact as to whether the same is included in the invoice or not it would get attracted. The value of the VAT also would, therefore, get included in the import value for the purpose of processing the entry tax as it would fall under “other charges incidentally levied on the purchase of such goods” which is paid or payable. Revision petition dismissed.
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