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2019 (7) TMI 1196 - HC - VAT and Sales TaxRejection of Input tax credit - rejection on the ground of stock maintained by the revisionist on the ground that the revisionist had failed to provide requisite information in Form-A - HELD THAT - The prescription of Rule is mandatory in character inasmuch as word used are shall furnish , it clearly indicates that the revisionist was bound to provide the information in the prescribed form. It is immaterial that the data which was to be supplied to the Assessing Authority was voluminous is no ground for not providing the same in prescribed format. It is admitted that the data which was provided by the revisionist was exhaustive running into hundreds of pages. Be that as it may, same was to be provided in prescribed format and in absence of which the Tribunal has rightly held that the revisionist was not entitled to the benefit of Input Tax Credit - as per provisions of Rule 20(3) of the Rules, 2008, it is mandatory to provide the information in the prescribed form and by not doing so, the assesee cannot avail of the benefit accruing there from. No other point has been argued by the learned counsel for the revisionist. Revision dismissed.
Issues:
1. Claim of Input Tax Credit rejected due to failure to provide requisite information in prescribed form. 2. Interpretation of Rule 20(3) of U.P. VAT Rules, 2008 regarding furnishing inventories in prescribed form. 3. Whether providing information in prescribed form is mandatory for availing Input Tax Credit benefits. 4. Compliance with procedural rules for grant of Input Tax Credit. 5. Applicability of case law in determining mandatory requirements for Input Tax Credit. Analysis: 1. The revisionist, engaged in the business of motor vehicles, components, spare parts, and accessories, filed a revision against the order rejecting their claim of Input Tax Credit for goods in closing stock. The Assessing Authority rejected the claim citing failure to provide requisite information in Form-A, leading to the appeal before the First Appellate Authority and subsequently the High Court. 2. The key issue revolved around the interpretation of Rule 20(3) of U.P. VAT Rules, 2008, which mandates dealers to furnish inventories in the form prescribed by the Commissioner. The Tribunal deemed this provision as mandatory, emphasizing that the use of "shall furnish" implies an obligation to provide information in the prescribed format, irrespective of the voluminous nature of the data. 3. The High Court deliberated on whether providing information in the prescribed form is a prerequisite for availing Input Tax Credit benefits. The revisionist argued that substantial compliance with Rules 19 and 20 should suffice, contending that the Assessing Authority's rejection solely based on the format was arbitrary. However, the Court upheld the Tribunal's decision, emphasizing the mandatory nature of providing information in the prescribed form under Rule 20(3). 4. The case highlighted the importance of procedural compliance for the grant of Input Tax Credit. The revisionist's submission of exhaustive data in electronic form, though voluminous, did not absolve them from the obligation to adhere to the prescribed format. The Court reiterated that non-compliance with the prescribed form, regardless of the data's volume, renders the assessee ineligible for the benefit of Input Tax Credit. 5. In analyzing the case law precedent, the Court referenced the judgment in M/s K.B. Hides Vs. State of U.P. and Others, emphasizing the principle that tax laws prioritize strict adherence to regulations over considerations of equity or individual hardships. The Tribunal's decision to deny exemption for failure to provide information in the prescribed format aligned with this legal stance, reinforcing the mandatory nature of compliance with regulatory requirements. In conclusion, the High Court upheld the Tribunal's decision, dismissing the revision for lacking merit due to non-compliance with the mandatory provision of providing information in the prescribed form for availing Input Tax Credit benefits.
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