2011 (11) TMI 807 - AT - VAT and Sales Tax

Summary

Issues involved: Challenge to rejection of input-tax credit based on sale release order not being equated with tax invoice.

Summary:
The present application u/s 8 of the West Bengal Taxation Tribunal Act, 1987 challenges the rejection of input-tax credit by the Joint Commissioner of Sales Tax, Bally Circle based on a sale release order issued by South Eastern Railway not being considered as a tax invoice. The petitioner purchased goods on auction from South Eastern Railway and claimed input-tax credit of Rs. 1,63,332 u/s 21 of the VAT Act, which was rejected.

The petitioner argued that the sale release order should be treated as a tax invoice as it contained all the required particulars as per rule 91 of the VAT Rules, 2005. The petitioner's representative cited a case to support the claim that genuine purchase transactions entitle the petitioner to input-tax credit.

The respondents contended that the dealer must produce an original tax invoice to claim input-tax credit as per the provisions of the VAT Act, 2003. Since no tax invoice was produced, the claim was disputed.

The Tribunal noted that the sale release order issued by South Eastern Railway contained all the details required for a tax invoice as per rule 91 of the VAT Rules, 2005. The confirmation by South Eastern Railway and the collection of VAT/taxes further supported the petitioner's claim for input-tax credit.

The Tribunal allowed the application, directing the assessing authority to grant input-tax credit after verifying the documents and treating the sale release order as a tax invoice. No costs were awarded in the matter.

Separate Judgement by Sabyasachi Roy (Technical Member):
Sabyasachi Roy, the Technical Member, concurred with the decision.