2018 (11) TMI 516 - HC - VAT and Sales Tax

Input tax credit - UPVAT Act - claim of credit raised by the dealer opposite party on usage of D.E.P.B. Skips licence while making custom duty on the imported goods - Held that - This revision is squarely covered by the decision in the case of The Commissioner of Commercial Tax U.P., Lucknow v. S/S Dhooper Chemicals Pvt. Ltd. 2018 (3) TMI 1660 - ALLAHABAD HIGH COURT , where Division Bench in the case of JAGRITI PLASTICS LTD., N.F. IMPEX PVT. LTD. VERSUS COMMISSIONER OF TRADE & TAXES 2015 (10) TMI 291 - DELHI HIGH COURT has held that D.E.P.B. scrips has contributed, if not directly then indirectly, to the price of imported commodity sold by the Assessee in the market - Revision dismissed.

Summary

Issues:
- Question of law regarding acceptance of input tax credit under the U.P. Value Added Tax Act on usage of D.E.P.B. Skips licence while making custom duty on imported goods.

Analysis:
The judgment revolves around the issue of whether the Commercial Tax Tribunal was legally justified in accepting the claim of input tax credit under the U.P. Value Added Tax Act related to the usage of D.E.P.B. Skips licence for custom duty on imported goods. The assessing authority initially refused to allow Input Tax Credit on D.E.P.B. Licence purchases made by the assessee. The dispute escalated when the First Appeal in favor of the assessee was allowed by the Additional Commissioner Grade-2 (Appeal) (2nd) Commercial Tax, Kanpur. Subsequently, the Commissioner Commercial Tax U.P., Lucknow filed a Second Appeal before the Commercial Tax Tribunal, Kanpur, which was dismissed. It was noted that a similar judgment by the High Court in Sales/Trade Tax Revision No. 88 of 2018 favored the assessee, which led to the dismissal of the revision in question. The judgment answered the legal query in favor of the assessee based on the precedent set by the earlier judgment.

This case underscores the importance of legal justifications and adherence to tax laws in claiming input tax credit under relevant statutes. The decision highlights the significance of judicial precedents in shaping outcomes, as evidenced by the reliance on a previous judgment that favored the assessee. The judgment emphasizes the need for consistency in legal interpretations and application of laws, as demonstrated by the dismissal of the revision based on established legal principles. It also showcases the role of appellate authorities and tribunals in resolving disputes related to tax matters, ensuring a fair and transparent process for both taxpayers and tax authorities. The judgment ultimately upholds the principle of fairness and adherence to legal provisions in tax assessments and credit claims, providing clarity on the application of tax laws in specific scenarios.