2022 (10) TMI 1072 - HC - VAT and Sales Tax

Permission for withdrawal of appeal - Validity of assessment - levy of tax, interest and penalty - suppression of sale - non-refund of input tax credit - sale of the set of product at a price lower than the actual purchase price - Section 40A of DVAT Act - HELD THAT - There are no material on record to conclude that the submission made in this behalf by Mr Sarin is correct. According to us, the appellant should have, in these circumstances, immediately moved the Tribunal by way of a review application. The appeal is, accordingly, dismissed as withdrawn with liberty as prayed for.

Summary

Issues:
Delay in re-filing the appeal, interpretation of the order passed by the Delhi Value Added Tax Appellate Tribunal, compliance with Section 76(8) of the Delhi Value Added Tax Act, withdrawal of the appeal for review application.

Delay in re-filing the appeal:
An application was filed seeking condonation of a 12-day delay in re-filing the appeal. The respondent did not oppose the application, and the delay was accordingly condoned, leading to the disposal of the application.

Interpretation of the order passed by the Delhi Value Added Tax Appellate Tribunal:
The appeal was directed against an order passed by the Delhi Value Added Tax Appellate Tribunal. The appellant was not aggrieved by the directions setting aside the impugned assessments and orders. However, the appellant contested the direction empowering the Assessing Authority to ascertain any loss to the exchequer due to non-refund of input tax credit. The appellant argued that the remand should adhere to the conditions set forth in Section 76(8) of the Act.

Compliance with Section 76(8) of the Delhi Value Added Tax Act:
The appellant contended that the Tribunal did not advise them of the proposed order to set aside the assessment and remit the matter to the Assessing Authority for further assessment, as required by Section 76(8) of the Act. The appellant was advised to move the Tribunal by way of a review application, acknowledging the Tribunal's powers of review under Section 76(13) of the Act.

Withdrawal of the appeal for review application:
The appellant expressed a desire to withdraw the appeal and move the Tribunal through a review application, subject to the grant of liberty. The respondent did not object to this course of action. Consequently, the appeal was dismissed as withdrawn with the liberty requested. The Tribunal was directed to entertain the review application to determine if the requirements of remand under Section 76(8) of the Act were met, emphasizing that the judgment did not express an opinion on the review application's subsequent handling and disposal.