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2019 (5) TMI 1087 - HC - VAT and Sales TaxInput tax credit - scope of amendments made to restrict the credit - benefit of credit which was rightly reversed by the assessing authority - Assessment Year 2013-14 - whether grant of input tax credit (ITC), according to Section 13(1)(f) of the Act or the benefit to be extended as granted by the Tribunal applying the provisions of Section 13(3)(b) read with Explanation (iii)of Section 13 of the Act - HELD THAT:- As the Apex Court in the case of Jayam & Co. [2016 (9) TMI 408 - SUPREME COURT] has categorically held that the claim of ITC is not the right of a dealer but is a concession granted under the provisions of the Act. Similarly in Section 13 of the U.P.VAT Act, input tax credit has been provided as a concession to a dealer who in respect of taxable goods purchased within the State subject to conditions given therein, and such other conditions and restrictions as may be prescribed, is allowed credit of an amount as input tax credit, to the extent provided by, or under the relevant clause, meaning thereby that it is not a vested right but it is a concession which is given on the fulfillment of certain conditions as enumerated under the given clause. In the present case Section 13(1)(f) was inserted on 20.8.2010 and the reason and object of the Amending Act was to protect the revenue of the State, which was being misused by the dealers and the said provision was provided as a safeguard. In the present case, it is rice bran which is purchased, and rice bran oil and physical refined rice bran oil is manufactured from the raw material. Further, only 13.77 % of taxable goods, i.e., rice bran oil is produced and rest of 83.60 % bye product i.e. DORB is produced, which is exempted from tax under Schedule-I of the VAT Act. Thus, the case of the dealer is covered under this provision as sale price is lower than the cost price. While the benefit granted by the Tribunal would amount to loss to the revenue if the argument of the counsel for the assessee is accepted that cumulative sale price of the taxable product and exempted bye product have to be considered. Present case specifically falls under Section 13(1)(f) of the Act. Supreme Court in the case of Jayam & Co. have held that it is not a right of a dealer to get the benefit of ITC but it is a concession by virtue of the provisions of the Act. Further, it is a trite law that whenever concession is given by statute or notification etc., the condition thereof are to be strictly complied with in order to avail such concession. Further, the observation of the Apex Court that how much tax credit is to be given and under what circumstances, is the domain of the Legislature and the Courts are not to tinker with the same - Thus, in the present case by Amending Act of 2010, the Legislature had made specific provision in regard to those cases where the sale price of the manufactured goods was lower than the cost price. Revision allowed.
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