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2016 (4) TMI 179 - UTTARAKHAND HIGH COURT

2016 (4) TMI 179 - UTTARAKHAND HIGH COURT - [2016] 91 VST 168 (Utk) - Input tax credit - Whether stock transfer is covered by the proviso of Section 6(3)(d) - Non consideration of the effect of the use of word “or” in Section 6(3)(d) of the Uttarakhand Value Added Tax Act while discussing the appeal - Held that:- the use of the word “or”, in the context of this case, is intended to convey the meaning that the sale may be within the State, an intra-State transaction in Uttarakhand, or the sale ma .....

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o meaningless. In other words, when goods are sent by way of stock transfer in the course of inter-State trade, the case would not be covered by Section 6(3)(d) of the Uttarakhand VAT Act. The intention of the legislature was to provide limited relief of providing input tax credit, but confined to raw materials, which are used in the manufacture or processing of finished goods, which are sent by way of stock transfer as a case of stock transfer cannot be treated as a case of sale. In such circum .....

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used in connection with finished products, which are stock transferred outside the State in course of inter-State trade or commerce. - Decided against the appellant - Special Appeal No. 24, 27, 29, 30 of 2016 - Dated:- 24-2-2016 - K.M. Joseph, C.J. And V.K. Bist, JJ. For the Appellants : Mr. Siddhath Bawa & Mr. Ramji Srivastava, Advocates For the Respondent : Mr. Anil Kumar Joshi, Additional Chief Standing Counsel ORDER K.M. Joseph, C.J. (Oral) The appeals are four in number. Appellant in a .....

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y writ, order or direction holding that Section 6(3)(d) of the UKVAT Act, does not restrict / deny ITC claim on packaging material, containers etc. purchased locally, used in the manufacture of goods in Uttarakhand and sent outside the State otherwise than by way of sale ; iv. Alternate to prayer (iii) above and in the event this Hon be Court is to hold that Section 6(3)(d) of the UKVAT Act denies ITC on packaging material etc. in case of transactions other than by way of sale; issue any writ, o .....

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ority in law to stop issuance of Form XVI as provided under Rule 26(3) of Uttarakhand VAT Rules; 2. As far as the first prayer is concerned, the learned Single Judge has stated that the appellant can avail statutory remedy available to it, and did not think it fit to entertain the writ petition in regard to the same. As far as Prayer Nos. 2 to 6 are concerned, the learned Single Judge thought it fit to follow the decision of the Division Bench of this Court in the writ petitions filed by the Hin .....

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he appellant Sri Siddharth Bawa along with Sri Ramji Srivastava and learned Additional Chief Standing Counsel Sri Anil Kumar Joshi. 4. Sri Siddharth Bawa, learned counsel for the appellant would point out that the Hon ble Apex Court has only rejected the special leave petitions in limine, but he points out that it must be noted that no reasons were given. He, therefore, submits that there is no merger and it cannot, therefore, be taken that the Hon ble Apex Court has laid down the law in terms o .....

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ION 6 : Input Tax Credit.- (3) Input tax credit shall be allowed for the goods purchased within the State of Uttarakhand, from a registered dealer holding a valid certificate of registration under Section 15 or Section 16, for the purpose of- (a) … (b) … (c) … (d) use as [raw material and consumables] in manufacturing or processing of goods (other than those specified in Schedule I or Schedule III) and containers or other packing materials used for packing of such manufactur .....

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word or in between the words for sale or resale within the State and the words in the course of Inter-State trade or commerce . He would emphasize that ordinarily when the word or is used, it is meant to be disjunctive. He fairly submits that it can in appropriate cases be used as and . He would further seek to emphasize that the proviso, which refers to Clause (d) is not to be treated as a substantive provision in itself, which is what this Court did in the writ petitions filed by Hindustan Uni .....

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of the Code. In the context of the said question, the Court disagreed with the views of the Full Bench of the High Court of Delhi and took the view that Section 372 is the main enactment and the proviso clothes a victim with the right to file an Appeal. The right to file the Appeal would be conditioned by the other provisions of the Code for the reason that Section 372 provides that no Appeal will lie from any judgment or order of a criminal court, except as provided for by the Code of Criminal .....

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settled rule of construction that a proviso must prima facie be read and considered in relation to the principal matter to which it is a proviso. It is not a separate or independent enactment. Words are dependent on the principal enacting words to which they are tacked as a proviso. They cannot be read as divorced from their context (Thompson v. Dibdin 1912 AC 533). If the rule of construction is that prima facie a proviso should be limited in its operation to the subject matter of the enacting .....

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judgment of this Court, against which, the special leave petitions filed, proved unsuccessful, we had noted the aforesaid proposition of law, but this Court had found that the proviso involved in this case is an independent provision. This finding of the Court is to be appreciated in the context of the statute in question and the provisions read as a whole. Section 6(3)(d) of the Uttarakhand VAT Act is specifically intended to cover cases of raw materials and packing materials used in the produ .....

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are fortified in this view of ours on a reference to the plain wording of the proviso. The proviso clearly provides with reference to Clause (d) that where the finished goods, mentioned in Clause (d), are dispatched outside the State other than by way of sale, the consequences provided therein will follow. This would clearly mean that the legislature intended to cover the cases of sale in the course of inter-State trade or commerce in Section 6(3)(d) of the Uttarakhand VAT Act. Any other view wo .....

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