TMI Blog2017 (2) TMI 1132X X X X Extracts X X X X X X X X Extracts X X X X ..... e subsection. In all other cases, an actual deposit of taxes is mandated before a set off is allowed” - In the present case, the VAT Act is silent; Section 9(2) (g) was introduced only with effect from 1-4-2010 - Section 9(1) which grants input credit to purchasing dealers to an extent is controlled by Section 9(2) that lists specific situations where benefit can be denied - appeal dismissed - decided against Revenue. - VAT APPEAL 30/2016, C.M. APPL.46310-46312/2016 - - - Dated:- 7-2-2017 - S. Ravindra Bhat And Najmi Waziri, JJ. For the Appellant : Sh. Satyakam, ASC with Sh. Inder Prakash, Avato For the Respondent : None ORDER 1. This appeal under Section 81 of the Delhi VAT Act, 2004 [hereafter the Act ] challenges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing observations in the case of M/s Shanti Kiran India Pvt. Ltd. versus Commissioner, Trade Tax are worth mentioning, which are as under: In the present case, section 9(1) grants input credit to purchasing dealers. Section 9 (2), on the other hand, lists out specific situations where the benefit is denied The negative list, as it were, is restrictive and is in the nature of a proviso. As a result, this Court is of the opinion that the interpretation placed by the Tribunal that there is statutory authority for granting input credit, only to the extent tax is deposited by the selling dealer, is unsound and contrary to the statute. It is also iniquitous because an onerous burden is placed on the purchasing dealer - in the absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants input credit to purchasing dealers to an extent is controlled by Section 9(2) that lists specific situations where benefit can be denied. The Court also considered the proviso to Section 9(2) and thereafter held as follows: The negative list, as it were, is restrictive and is in the nature of a proviso. As a result, this Court is of the opinion that the interpretation placed by the Tribunal that there is statutory authority for granting input credit, only to the extent tax is deposited by the selling dealer, is unsound and contrary to the statute. It is also iniquitous because an onerous burden is placed on the purchasing dealer in the absence of clear words to that effect in the statute- to keep a vigil over the amounts deposited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tax in respect of which the set off is claimed that has been deposited into the treasury. The plain and natural meaning of the expression actually paid into the treasury is that the tax on purchases of which a set off is claimed must actually and physically have been deposited into the treasury. A constructive or notional deposit would not fulfill the mandate of the provision. The State Legislature has used language of a mandatory nature that leaves its intent beyond any doubt. The exception which is carved out in the substantive part of sub-section (5) is where a claimant dealer is liable to pay purchase tax on the purchase of the said goods effected by him. The proviso creates an exception where tax is deferred or deferrable under a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
