2020 (9) TMI 1068 - HC - VAT and Sales Tax

Input Tax Credit - validity of default notices of assessment of tax, interest and penalty - Section 9(2)(g) of the Delhi Value Added Tax Act, 2004 - HELD THAT - The impugned order dated 25th June, 2020 passed by the OHA is set aside and the matter is remanded back to the OHA. The OHA is directed to decide the matter within twelve weeks. All the rights and contentions of the parties are left open. Petition disposed off.

Summary

Issues Involved:
Challenge to disallowance of input tax credit under DVAT Act, challenge to default assessment notices, contradictory orders from the same set of facts, withdrawal of impugned order by OHA, assessment barred by limitation.

Analysis:

1. Challenge to Disallowance of Input Tax Credit under DVAT Act:
The petitioner filed a petition challenging the order disallowing input tax credit under Section 9(2)(g) of the Delhi Value Added Tax Act, 2004. The petitioner also contested default assessment notices issued for the tax periods 1st and 2nd quarters 2015-2016. It was highlighted that similar objections pending before the special OHA for other tax periods had been allowed in favor of the petitioner, indicating a favorable precedent.

2. Contradictory Orders and Withdrawal by OHA:
The court noted that there were conflicting orders arising from the same facts. The learned ASC for the Government of NCT of Delhi, after discussions with the authorities, expressed a desire to withdraw the impugned order passed by the OHA. The withdrawal was made with the liberty to pass a fresh order in compliance with the law after hearing the petitioner within a specified timeframe.

3. Assessment Barred by Limitation:
The petitioner contended that the present assessment was time-barred. Considering this aspect, the court set aside the impugned order dated 25th June, 2020 passed by the OHA and remanded the matter back to the OHA for a fresh decision within twelve weeks. The court ensured that all rights and contentions of the parties were left open for further consideration.

4. Conclusion:
In conclusion, the court disposed of the petition and pending applications, directing the OHA to decide the matter promptly. The order was to be uploaded on the website immediately, and a copy was to be forwarded to the counsel via email. The judgment provided clarity on the issues raised, ensuring a fair and timely resolution of the dispute related to the disallowance of input tax credit and default assessment notices under the DVAT Act.