2017 (3) TMI 1488 - HC - VAT and Sales Tax

Input tax credit - denial on the ground that the invoices could not be produced - the tax invoices were lost. The appellant failed before the First Appellate Authority and the Tribunal as he could not get duplicate copy of tax invoices and statutory VAT-C-4 by that time. Subsequently the appellant obtained duplicate copy from the Selling Dealer and also VAT-C-4 in original - Held that - the appellant has produced the duplicate tax invoices and the statutory form VAT-C-4, along with the present appeal, in our view the appeal deserves to be accepted. The impugned orders passed by the Authorities are set aside. The matter is remitted back to the Assessing Authority for fresh determination of tax liability of the appellant after the appellant furnishes duplicate tax invoices and original statutory form VAT-C-4 - benefit of input tax credit allowed - appeal allowed by way of remand.

Summary

Issues: Appeal against order disallowing input tax credit due to lost tax invoices and C-4 certificates.

Analysis:
1. Issue 1 - Production of documents during pending proceedings:
The appellant appealed against the disallowance of input tax credit by the Assessing Authority due to lost tax invoices. The appellant later obtained duplicate copies of the tax invoices and statutory VAT-C-4, which were submitted during the appeal. The appellant argued that as per the Right to Information Act, it was confirmed that the tax on purchased goods had been paid. Referring to precedents, the appellant contended that the documents could be produced at any stage to claim input tax credit. The State did not dispute the legal position but emphasized the importance of timely document submission.

2. Issue 2 - Verification of tax payment and input tax credit:
The Court considered the appellant's claim that tax had been paid to the Selling Dealer for the purchased petroleum products, supported by duplicate tax invoices and VAT-C-4. Citing previous judgments, the Court highlighted that errors in documents should not be fatal if tax payment can be verified. The Court noted that information obtained under the Right to Information Act confirmed the tax deposit by the Selling Dealer. Based on the legal principles and evidence presented, the Court decided in favor of the appellant, setting aside the previous orders and remitting the matter to the Assessing Authority for a fresh determination of tax liability upon verification of input tax payment.

3. Final Decision:
The Court allowed the appeal, directing the appellant to appear before the Assessing Authority for fresh assessment after submitting the required documents. The Court emphasized that if the payment of input tax was confirmed, the appellant should be granted the benefit accordingly. The judgment answered the substantial questions of law raised in the appeal and disposed of the case accordingly.