2015 (9) TMI 577 - HC - VAT and Sales Tax

Benefit of input tax credit Whether dealer can file tax invoices and Forms VAT C-4 claiming benefit of input tax credit at appellate stage and in that eventuality liability of dealer is to be re-determined Held that - In view of observation made by current in M/s Vijay Cottex Limited, Panipat v. State of Haryana and others 2013 (12) TMI 1447 - Punjab and Haryana High Court it has been held that dealer is entitled to produce Form VAT C-4 and tax invoices before assessing authority who shall verify same and pass fresh order, in accordance with law Therefore appeal disposed of Decided in favour of Appellant.

Summary

Issues:
1. Appeal under Section 36 of the Haryana Value Added Tax Act, 2003 against the order of the Haryana Tax Tribunal.
2. Questions of law regarding the production of declaration forms during appeal proceedings.
3. Assessment of sales made against declaration Forms 'I' and 'C' for the assessment year 2008-09.
4. Rectification of the assessment order by the assessing authority.
5. Appeal before the Joint Excise and Taxation Commissioner (Appeals) and subsequent remand.
6. Production of all declaration forms before the assessing authority.
7. Dismissal of the appeal by the Tribunal.
8. Dealer's claim for benefit of input tax credit at the appellate stage.
9. Submission of tax invoices and Forms VAT C-4 before the Assessing Authority.
10. Precedents in similar cases regarding the entitlement of the dealer to produce Form VAT C-4 and tax invoices.

Analysis:
The appellant filed an appeal under Section 36 of the Haryana Value Added Tax Act, 2003 against the order of the Haryana Tax Tribunal, raising substantial questions of law related to the production of declaration forms during appeal proceedings. The assessment for the sales made against declaration Forms 'I' and 'C' for the assessment year 2008-09 resulted in a demand due to short production of these forms. The assessing authority initially created a demand which was later rectified after the dealer produced the declaration forms within the extended time period. The matter was remanded by the Joint Excise and Taxation Commissioner (Appeals) for entertaining the declaration forms 'I' and 'C'. The dealer then appeared before the assessing authority and submitted all the declaration forms, leading to a reduction in the demand. However, as not all forms were received, an appeal was filed before the Tribunal, which ultimately dismissed the appeal.

The primary question addressed in this appeal was whether the dealer could file tax invoices and Forms VAT C-4 at the appellate stage to claim the benefit of input tax credit, thereby necessitating a re-determination of the dealer's liability. The appellant argued that non-receipt of invoices and Forms VAT C-4 earlier prevented their submission, but now they were in possession of these forms and should be allowed to submit them before the Assessing Authority. Both parties agreed that the issue had been settled in previous cases decided by the Court, where it was held that the dealer is entitled to produce Form VAT C-4 and tax invoices before the assessing authority for verification and a fresh order in accordance with the law. Consequently, the present appeal was disposed of in line with the precedents cited, allowing the dealer to submit the required forms for re-determination of liability.