2016 (5) TMI 1336 - HC - VAT and Sales Tax

Input tax credit - denial on the ground of non-submission of declaration Form C-4 and statutory documents - Held that - petition disposed of by permitting the assessee to produce Form VAT C-4 before the assessing authority who was directed to decide the same afresh in accordance with law - petition allowed by way of remand.

Summary

Issues:
Challenge to disallowance of input tax credit for want of Form C-4 and statutory documents.

Analysis:
The petitioner, a partnership firm in the textile industry, filed returns and paid taxes for the assessment year 2006-07, claiming input tax credit on purchases. However, the assessing authority disallowed the credit due to the non-submission of declaration Form C-4 and other necessary documents. An appeal to the Joint Excise & Taxation Commissioner and subsequently to the Tribunal partially succeeded, but the claim for input tax credit was still rejected based on a previous decision. The petitioner challenged this decision in a writ petition.

The petitioner argued that a previous judgment directed the assessing officer to consider Form C-4, which was not submitted earlier, and cited another case where a similar direction was given. On the other hand, the State counsel contended that the petitioner's negligence in not producing Form C-4 should preclude granting an opportunity to submit it now.

Upon hearing both parties, the Court noted that the Tribunal's decision was based on a previous case where the assessee was allowed to produce Form VAT C-4 for reconsideration. Therefore, the Court disposed of the writ petition in line with the previous judgment, directing the assessing authority to decide the matter afresh considering the Form C-4, similar to the resolution in a previous case.

In conclusion, the Court's decision in this case aligns with previous judgments, emphasizing the importance of providing necessary documentation like Form C-4 for claiming input tax credit. The Court's directive to reconsider the matter in light of the missing document reflects a fair approach to resolving the dispute and upholding tax compliance standards.