2015 (9) TMI 96 - HC - VAT and Sales Tax

Benefit of Input Credit Tax During assessment Appellant could not appear and produce record so as to claim benefit of input credit Issue was decided against appellant, on appeal, all documents were produced before appellate authority but appeal was dismissed on ground that no document could be produced in appeal Held that - it is contended by parties that issue raised in appeals is no longer res integra and stands concluded by decisions of this court in Vijay Cottex Ltd. v. State of Haryana 2013 (12) TMI 1447 - Punjab and Haryana High Court , wherein it has been held that dealer is entitled to produce form VATC-4 and tax invoices before assessing authority who shall verify same and pass fresh order, in accordance with law In view of above, appeals disposed of in same terms as in Vijay Cottex Ltd. case Decided in favour of Assesse.

Summary

Issues:
- Dismissal of appeals against orders for the assessment year 2006-07.
- Claiming substantial questions of law.
- Dealer's entitlement to produce form VATC-4 and tax invoices at the appellate stage.

Analysis:
The judgment pertains to the dismissal of appeals filed by the appellant-assessee against orders dated March 15, 2010, March 28, 2012, and February 6, 2013, for the assessment year 2006-07. The appellant, engaged in manufacturing and trading of various materials, purchased boulders from a seller in Haryana and claimed input tax based on invoices. However, due to non-appearance and failure to produce records, the assessment was framed ex parte in 2010, and subsequent appeals were dismissed on procedural grounds. The issue revolved around the appellant's right to claim input tax credit at the appellate stage by producing relevant documents.

The primary question addressed in the appeals was whether the dealer could submit tax invoices and form VATC-4 to claim input-tax credit during the appellate proceedings, leading to a reassessment of the dealer's liability. The learned counsel for both parties agreed that the issue had been settled by previous court decisions, specifically referencing cases titled Vijay Cottex Ltd., Panipat v. State of Haryana and Jai Hanuman Stone Crushing Mills, Bhiwani v. State of Haryana. These precedents established that the dealer was indeed entitled to present form VATC-4 and tax invoices at the appellate stage for verification by the assessing authority, who would then issue a fresh order in compliance with the law.

Consequently, the High Court, following the precedent set by the aforementioned cases, disposed of the present appeals in line with the decisions in Vijay Cottex Ltd., Panipat and Jai Hanuman Stone Crushing Mills, Bhiwani. The judgment reaffirmed the dealer's right to produce necessary documents at the appellate stage for consideration in determining the dealer's tax liability, emphasizing the importance of following legal procedures and ensuring fair assessment practices.