9911796707
TMI Blog2011 (7) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... s paying tax under Section 6(1) of the Act on the sale of goods at the rates prescribed in the various Schedules to the Act are entitled to claim input tax credit based on purchase bills as provided under Section 11(1) of the Act. However, Section 6(5) of the Act provides that those registered dealers with turnover below Rs. 50 lakhs in an year are entitled to remit tax at .5%(half percent) of the turnover. However, the dealers paying presumptive tax under Section 6(5) are not entitled to claim input tax credit on the purchases by virtue of prohibition contained under Section 11(4) of the Act. The assessee claimed that their turnover during the year 2005-2006 will be less than Rs. 50 lakhs and based on the said premises they started paying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 11(1) is available to only registered dealers paying tax under Section 6(1) of the Act which provides for payment of tax at the rates provided under various Schedules to the Act. The petitioner admittedly remitted presumptive tax only under Section 6(5) of the Act at .5%(half percent) and by virtue of Section 11(4), petitioner was not entitled to input tax credit. However, the question to be considered is whether input tax credit can be claimed after detection of suppressed sales and consequent assessment made at the Schedule rate as against the presumptive tax paid by the petitioner. Petitioner's case is that once the assessment is made at the Schedule rate, petitioner becomes liable for payment of tax under Section 6(1) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncing from the return period subsequent to the date of order allowing such input tax credit." What is clear from Rule 12(7) is that a dealer paying presumptive tax should furnish Form No.25A along with stock inventory on the date of change over and a statement of purchase bills issued by registered dealers paying tax under Section 6(1) within 15 days from the date of change over. If the dealer is covered by compulsory audit, the dealer's application in Form No.25A should be certified by a Chartered Accountant or Cost Accountant. What sub-rule (8) says is that the Assessing Officer is bound to scrutinise documents submitted as above and if he is satisfied that the claim made is in order, he should permit the dealer to claim input tax cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7) by furnishing Form No.25A along with statement of purchase bills for change over to the scheme of payment of tax under Section 6(1). In order to avail the benefit, petitioner has to get permission from the officer who grants it under sub-rule (8) on being satisfied after verifying Form 25A and the accounts furnished. In the absence of compliance of statutory formalities provided in the above Rules, petitioner was rightly declined input tax credit. So far as petitioner's contention that petitioner is entitled to input tax credit under Section 11(1) by virtue of assessment of the entire turnover for 2005-2006 at Schedule rate is concerned, we do not think the contention is acceptable because under Rule 12(8) there is no provision to gr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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