2022 (10) TMI 510 - HC - VAT and Sales Tax

Application for suo motu review of the Tribunal s judgment dismissed - steps taken towards recovery of the demand raised against the petitioner could be retracted or not - HELD THAT - While on one hand, the legal issue stands decided in favor of the assessees, generally, which includes the petitioner, the demand, which would have been formally set aside, had the petitioner preferred an appeal with this Court, remains undisturbed - the assessment order given the aforementioned peculiar circumstances , has to be seen in the backdrop of the decision of this Court, and the fact that the Supreme Court had dismissed the SLP of the respondents/revenue, both on the ground of delay, as well as on merits. On merits, the broad issue which arose for consideration of this Court was whether the respondents/revenue were right in contending that the assessees were required to reverse input tax credits claimed by them on purchases made, on account of credit notes issued by selling dealers, despite the selling dealers having confirmed, that they had not reduced their output tax liabilities - this issue has been decided in favour of the assessees. The impugned order deserves to be set aside - Petition disposed off.

Summary

Issues:
Challenge against order of Delhi Value Added Tax Appellate Tribunal on review applications.

Analysis:
- The writ petition challenged the order of the Delhi Value Added Tax Appellate Tribunal dismissing twelve review applications filed by the petitioner on various tax periods.
- The petitioner sought suo motu review of the Tribunal's judgment dated 28.07.2014 through the review applications.
- The petitioner, being aggrieved by the dismissal of the review applications, instituted the writ petition.
- The High Court noted that the petitioner did not prefer an appeal to the Court despite being part of the appeals disposed of by the Appellate Tribunal.
- The petitioner filed miscellaneous applications for review in the disposed-off appeal after the unsuccessful assessees approached the High Court through statutory appeals.
- Recovery proceedings were initiated against the petitioner, and an attachment order was issued under Section 139 of the Delhi Land Reform Act, 1954.
- The High Court observed that the legal issue regarding input tax credits claimed by the assessees on purchases made had been decided in favor of the assessees.
- Considering the circumstances, the High Court set aside the impugned order and quashed the demand against the petitioner, similar to other assessees.
- The Court acknowledged arguments against delay and laches but held that relief should not be deprived solely on that basis.
- The petitioner was directed to deposit costs of Rs.50,000/- with the Delhi State Legal Services Authority.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved and the High Court's decision in each aspect of the case.