TMI Blog2014 (3) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... he understanding of the Tribunal as to its applicability appears to have been based upon a misreading of judgment passed in Carzonrent The omission to enact a similar provision in respect of different categories of sale transactions on the one hand, and the enactment of Section 2 (zd) (iii) which specifically deals with sale price in respect of transfer of the right to use, coupled with Section 2 (zm) ("turnover") - turnover is aggregate of sale price, point to legislative deliberation that the theory of proportionality sought to be propounded by the revenue - accepted by the Tribunal, has no statutory basis - Once the legislature entitles the assessee to a certain benefit of input credit, and puts in place a mechanism for working it out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of cars and accessories to the tune of Rs.91,01,978/- and claimed input credit to the tune of Rs.23,77,248/- in the return. The VAT authority was of the opinion that such input credit was not permissible as the cars have not been resold and only effective control and possession had been transferred to the customers and, therefore, it does not constitute resale in unmodified form. The input credit was sought to be disallowed in terms of Section 9 (2) (b) of the DVAT Act. The OHA rejected the contentions of the assessee which thereafter carried the matter in appeal to the DVAT Tribunal. Before the appeal could be heard on merits, the VAT Tribunal took up the assessee s request, through an application, for suspension and exemption of the requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich a dealer is entitled in respect of the purchase of goods is the amount of input tax arising in the tax period (Section 9 (3)); (d) Where a dealer has purchased goods and the goods are to be used partly for the purpose of making the sales referred to in sub-section (1) of this section and partly for other purposes, the amount of the tax credit shall be reduced proportionately. (e) Tax credit is inadmissible where the purchase of goods is from an unregistered dealer or where purchase of goods are for use exclusively for the manufacture, processing or packing of goods specified in the First Schedule (Section 9 (7)); (f) Tax credit is admissible in a proportionate manner, only in respect of capital goods (Section 9 (9)). 25. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, to a certain benefit - of input credit, and puts in place a mechanism for working it out, which expressly provides one kind of proportional input credit, to a class of transactions, i.e. in relation to capital goods, it is not permissible for the Court to read into the statute another such proportional rule, without statutory sanction. 26. The reference to Section 12 ( 4) in this context, is unhelpful to the revenue, because that provision merely enables the Government to frame rules prescribing the time at which a dealer shall treat the (a) turnover; (b) turnover of purchases; and (c) adjustment of tax or adjustment to a tax credit; as arising for a class of transactions. Learned counsel for the Revenue urges that the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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