9911796707
TMI Blog2014 (3) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... input credit claimed by the appellant/assessee was correctly disallowed and whether the Tribunal was justified in holding that the disallowance was valid in rejecting the application for pre-deposit." 3. The brief facts are that the appellant is a VAT dealer engaged in leasing of motor vehicles. The VAT Audit Department conducted inspection of its activities and observed that during the first quarter of 2007-08, the dealer has shown purchases of cars and accessories to the tune of Rs.91,01,978/- and claimed input credit to the tune of Rs.23,77,248/- in the return. The VAT authority was of the opinion that such input credit was not permissible as the cars have not been resold and only effective control and possession had been transferred t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) input tax means the proportion of the price paid by the buyer for the goods which represents tax for which the selling dealer is liable under the Act (according to Section 2 (r); (b) sale price (Section 2 (zd) means in relation to transfer of the right to use any goods for any purpose (whether or not for a specified period) the valuable consideration or hiring charges received or receivable; (c) The amount of the tax credit to which a dealer is entitled in respect of the purchase of goods is "the amount of input tax arising in the tax period" (Section 9 (3)); (d) Where a dealer has purchased goods and the goods are to be used partly for the purpose of making the sales referred to in sub-section (1) of this section and partly for other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (zd) (iii) which specifically deals with sale price in respect of transfer of the right to use, coupled with Section 2 (zm) ("turnover") - which states that turnover is aggregate of sale price, point to legislative deliberation that the theory of proportionality, of the kind, sought to be propounded by the revenue, - and accepted by the Tribunal, has no statutory basis. Once the legislature entitles the assessee- as in this case, to a certain benefit - of input credit, and puts in place a mechanism for working it out, which expressly provides one kind of proportional input credit, to a class of transactions, i.e. in relation to capital goods, it is not permissible for the Court to read into the statute another such proportional rule, withou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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