Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s Modern Dairies Limited Versus The State of Haryana and another

2016 (10) TMI 374 - PUNJAB AND HARYANA HIGH COURT

Input tax credit - whether the Hon'ble Tribunal was justified in rejecting the claim of the assessee for the Input Tax Credit, even though such purchases are not disqualified as per Schedule-'E' attached to the Haryana VAT Act, 2003? - Held that: - The kind of goods purchased by the appellant, input tax credit on which has been declined, is “cooper wire, Taflon Tape, Gasket, Union, Socket etc. Fire Bricks or Boiler, G. I. Pipe, M.S. Angle, Flat, T. Iron, M.S. Flange, Drill, Shaft sleeve, Industr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

- Entry 5 in Schedule-'E' is general in nature. All goods which are not forming part of the goods mentioned at Sr. Nos. 1 and 2 will form part of this entry. If the goods purchased by the appellant were not in the category of capital goods, the same will fall in the goods mentioned at Sr. No. 5. Considering the conditions as provided in column no.3, the appellant is not in the business of telecommunication, mining or generation and distribution of electricity, hence, the goods could not poss .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rst proviso to Section 8(1) of the Act provides that if the goods so purchased in the State are used or disposed of partly in the circumstance mentioned in Schedule “E' and partly otherwise the input tax credit in respect of such goods shall be computed on pro-rata basis. - The appellant entitled to input tax credit on the goods purchased by him. However, while calculating input tax credit conditions in Schedule 'E' and provisos to Section 8(1) of the Act have to be kept in view - appeal dis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or short, 'the Tribunal') in STA No. 393 and 394 of 2009-10: Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in rejecting the claim of the assessee for the Input Tax Credit, even though such purchases are not disqualified as per Schedule-'E' attached to the Haryan VAT Act, 2003? 2. Learned counsel for the appellant submitted that the appellant is a registered dealer under the provisions of Haryana Value Added Tax Act, 2003 (for sh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ch were used in the process of manufacturing. The Assessing Authority was wrong in opining that the goods were in the nature of 'infrastructure goods'. Aggrieved against the rejection of input tax credit, the appellant preferred appeal to the Joint Excise & Taxation Commissioner (Appeals), Ambala, where the order passed by the Assessing Authority was upheld. Still aggrieved, the appellant preferred appeal before the Tribunal. The Tribunal while even noticing the kind of goods purchas .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dule 'E' used or disposed of in the circumstances mentioned against such goods. Schedule 'E' appended to the Act provides for a list of goods where input tax is 'nil'. Serial No. 1 in the list will not be relevant as it provides for Petroleum products and natural gas. Serial No. 2 is also not relevant as it contains capital goods when intended to be used mainly in the manufacture of exempted goods or in the telecommunications, energy or mining or generation and distributi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tax credit will not be admissible. 4. Learned counsel for the petitioner further submitted that the kind of goods as have been noticed in the order of the Tribunal itself shows that those were part of the machinery being utilized in the process for manufacturing. There was nothing to suggest that with the kind of goods infrastructure could be created. He further referred to an earlier order passed by the Tribunal in Amir Chand Jagdish Kumar, Gharaunda, Karnal vs State of Haryana (2009) 33 PHT 1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

)(w) of the Act defines 'input tax', whereas Section 2(1)(zl) of the Act defines 'input invoice'. It clearly mentions that the goods must be used for manufacturing or processing of goods for sale. Section 8 of the Act and Schedule-'E' are not to be read in isolation, rather these are to be read together with Sections 2(1)(w) and 2(1)(zl) of the Act. Some of the goods in question were used by the appellant for construction of building, hence, input tax credit has rightly b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

led to input tax credit on their purchase as none of the circumstance exists on account of which the input tax credit shall be 'nil'. 'Capital goods' have been defined in Section 2(1)(g) of the Act. 7. Heard learned counsel for the parties and perused the paper book. 8. The relevant provisions of the Act are reproduced hereunder:- 2(1)(g) capital goods means plant, machinery, dies, tools and equipment purchased for use in the State in manufacture or processing of goods for sale o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

isions of sub-section (2) of section 28 by a VAT dealer for sale of taxable goods to another VAT dealer for resale by him or for use by him in manufacture or processing of goods for sale, and which entitles him to claim input tax in accordance with the provisions of section 8; xxx xxx xx Section 8. (1) Input tax in respect of any goods purchased by a VAT dealer shall be the amount of tax paid to the State on the sale of such goods to him and shall, in case of a dealer who is liable to pay tax un .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

used or disposed of partly in the circumstances mentioned in Schedule E and partly otherwise, the input tax in respect of such goods shall be computed pro rata: Provided further that if input tax in respect of any goods purchased in the State has been availed of but such goods are subsequently used or disposed of in the circumstances mentioned in Schedule E, the input tax in respect of such goods shall be reversed. (2) A tax invoice issued to a VAT dealer showing the tax charged to him on the s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ished to him in the prescribed form and manner by the selling dealer; and such authority shall allow the claim only if it is satisfied after making such inquiry as it may deem necessary that the particulars contained in the certificate produced before it are true and correct. (4) The State Government may, from time to time, frame rules consistent with the provisions of this Act for computation of input tax and when such rules are framed, no input tax shall be computed except in accordance with s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on the date of cancellation of the registration certificate. 3 (x x x) 4 (x x x) 5 All goods except those mentioned at Serial Nos. 1 and 2 (i) When used telecommunications network, in mining, or the generation and distribution of electricity or other form of power; (ii) When exported out of State or disposed of otherwise than by sale; (iii) When used in the manufacture or packing of exempted goods except when such goods are sold in the course of export of goods out of the territory of India; (i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Taflon Tape, Gasket, Union, Socket etc. Fire Bricks or Boiler, G. I. Pipe, M.S. Angle, Flat, T. Iron, M.S. Flange, Drill, Shaft sleeve, Industrial Fan, M.S. Channel, Angle, Fire Bricks, Rubber Ring, Electric Cable, Wire Cold Rolled Strips, Tape Cutter, etc. 10. A perusal of the aforesaid goods shows that none of them can be said to be of the category, which are used for construction of building, rather these are parts of machinery. In fact, none of the authorities were very clear on the issue a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ased for use in the State in manufacture or processing of goods for sale. 'Input Tax' has been defined in Section 2(1)(w) of the Act to mean the amount of tax paid to the State in respect of goods sold to a VAT dealer, which such dealer is allowed to take credit of as payment of tax by him, calculated in accordance with the provisions of Section 8 of the Act. Tax Invoice has been defined in Section 2 (1)(zl) of the Act to mean an invoice required to be issued as per Section 28 (2) of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

posed of in the circumstances mentioned against such goods. Schedule-'E' at the relevant time provided for three different categories of goods wherein in the circumstances mentioned in column 3 thereof the input tax credit was 'nil'. 12. The goods purchased by the appellant do not fall in the categories described at Sr. Nos. 1 and 2. 13. Entry 5 in Schedule-'E' is general in nature. All goods which are not forming part of the goods mentioned at Sr. Nos. 1 and 2 will form .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version