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TMI Blog2012 (3) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... sel and petrol from 6th June, 2006 and this increase was not to form part of the prices of petrol and diesel. The proviso did not say that VAT will not be payable and applicable on the pre 6th June, 2006 prices on petrol and diesel. Further, benefit under the proviso ceased to be applicable on roll back of prices w.e.f. 16.02.2007. Assessee contention of applicability of proviso even after the roll back of the prices does not find merit – Decided against the assessee. - SALES TAX APPEAL NOS. 6, 7, 10, 14, 16, 23, 25, 27/2012 - - - Dated:- 27-2-2012 - MR. JUSTICE SANJIV KHANNA, MR. JUSTICE R.V. EASWAR, JJ. For Appellant: Mr. S.K. Bagaria, Sr. Advocate with Mr. Ashok K. Bhardwaj, Mr. A.P. Vinod Mr. Manish Hirani, Advocates. F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opy enclosed) promulgated by the Lt. Governor of the National Capital Territory of Delhi, Value Added Tax shall not be charged with immediate effect on the Incremental prices (including the duties and levies charged thereon by the Central Government of petrol and diesel as has been announced by the Government of India with effect from 6th June 2006. Therefore Diesel and Petrol shall be sold in National Capital Territory of Delhi by not taking into account the component of the Value Added Tax on the increased price with immediate effect, meaning thereby that VAT shall continue to be charged on the pre-revised prices of diesel and petrol till further Notification in this regard. (emphasis supplied) 6. Thereafter, on 21st June, 2006 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idental to or ancillary to the sale of goods; (vii) in relation to works contract means the amount of valuable consideration paid or payable to a dealer for the execution of the works contract; less (a) any sum allowed as discount which goes to reduce the sale price according to the practice, normally, prevailing in trade; (b) the cost of freight or delivery or the cost of installation in cases where such cost is separately charged; and the words "purchase price" with all their grammatical variations and cognate expressions, shall be construed accordingly; Provided that an amount equal to increase in the prices of petrol and diesel (including the duties and levies charged thereon by the Central Government) taking effect from the 6th Jun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petrol and diesel and the stipulation in the proviso that the benefit thereunder shall continue till such date as the Government may by notification in the official gazette direct. In this connection, it is submitted that a notification dated 5th June, 2007 was issued in the official gazette and as per the said notification, the Lieutenant Governor had directed that from the said date, the proviso shall ceased to be effective. Thus, the appellants submit that benefit of 0.66 paise on petrol and 0.22 paise on diesel on the ad valorem VAT continued till 5th June, 2007. 10. We may reproduce below the reasoning given by the tribunal to reject the said contention raised by the appellants:- 17. .Tax is to be paid as per Sec. 4 of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the same as per the definition of the term sale price‟ which came to be controlled by introduction of the proviso in question. When there was no effect of the increased component, in the liability to pay VAT then it was immaterial when there was complete role back or when the Notification was issued as per this proviso. Thus in our considered view, the submission of the Ld. Counsels for the appellants that the meaning of this proviso was that appellants shall continue to follow the deduction till another notification was issued which was in fact issued in June 2007 and oil companies stopped taking benefit of the proviso after this notification in June 2007, is without any merit .. 11. We are in agreement with the aforesaid con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of the sale price of petrol and diesel. Therefore, when there was a partial and thereafter a complete roll back of the enhanced price and the prices of petrol and diesel were restored back to the pre 6th June, 2006 level with effect from 30th November, 2006 and 16th February, 2007, respectively, the benefit of the proviso obviously ceased to be partly or fully applicable and operate. The proviso only protected and gave exemption in respect of enhanced ad valorem VAT payable on account of increase in prices of diesel and petrol from 6th June, 2006 and this increase was not to form part of the prices of petrol and diesel. On this increase, no additional ad valorem VAT was payable. The proviso did not say that ad valorem VAT will not be pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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