2019 (9) TMI 1208 - HC - VAT and Sales Tax

Maintainability of appeal - monetary limit amount involved in the appeal - Validity of assessment order - reversal of input tax credit - Section 34 of HVAT Act read with Section 9(2) of the CST Act, 1956 - HELD THAT - We are not inclined to invoke jurisdiction on the ground that amount involved is only ₹ 1,54,606/-, hence, the appeal is dismissed.

Summary

Issues involved:
1. Appeal under Section 36 of the Haryana Value Added Tax Act, 2003 against the order of the Haryana Tax Tribunal.
2. Justification of upholding the order of revisional authority.
3. Inclusion of opening and closing stock in gross turnover for reversing Input Tax Credit.
4. Resolution of ambiguity in the Act in favor of the subject against the State.
5. Assessment order by the Assessing Authority and subsequent actions by the Revisional Authority.
6. Upholding of the Revisional Authority's order by the Tribunal.
7. Challenge of ITC on opening stock and formula for reversal of ITC on tax-free goods.
8. Dismissal of the appeal by the High Court based on the amount involved.

Analysis:

1. The appellant, a Private Limited Company, filed an appeal under Section 36 of the Haryana Value Added Tax Act, 2003 against the order of the Haryana Tax Tribunal. The questions raised included the justification of upholding the revisional authority's order and the inclusion of opening and closing stock in the gross turnover for reversing Input Tax Credit (ITC) without a provided formula.

2. The appellant, engaged in the manufacturing of Rice Bran and Sunflower Oil, had the assessment framed by the Assessing Authority for the Assessment Year 2010-11. The Revisional Authority sought reversal of ITC availed on the sale of tax-free goods, leading to an Additional Demand of ?1,54,606.

3. The Tribunal upheld the Revisional Authority's order, citing previous judgments against the appellant. The Tribunal mentioned that the ITC on opening stock considered by the Assessing Authority cannot be challenged in the present appeal and the formula for reversal of ITC on tax-free goods was upheld in a previous case.

4. The High Court dismissed the appeal due to the small amount involved but left the substantial questions of law raised by the appellant open for future consideration. The decision not to invoke jurisdiction was based on the minimal financial impact of ?1,54,606, despite the significant legal issues raised by the appellant.

By analyzing the legal proceedings and decisions made by the authorities, the High Court concluded that the appeal would be dismissed based on the amount involved, while acknowledging the substantial legal questions raised by the appellant for potential future review.