2008 (11) TMI 615

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..... etition seeks quashing of rule 21(1), (2) of the Punjab Value Added Tax Rules, 2005, framed under the provisions of the Punjab Value Added Tax Act, 2005 (in short, "the VAT Act") as ultra vires, in addition to quashing of notice dated December 24, 2007, annexure P1, requiring the petitioner to appear with record to show that due tax had been paid; assessment order dated January 21, 2008, annexure .....

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..... eum products evaporated on which tax had been paid and the petitioner was entitled to input-tax credit on the purchase value thereof irrespective of the fact that to that extent, goods were not available for sale. It is the case of the petitioner that the order of assessment disallowing input-tax credit to the petitioner on the purchase value of the product which evaporated, was illegal. Prayer h .....

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..... ly when goods are sold. If goods purchased are not available for further sale, question of input-tax credit could not arise. We have heard learned counsel for the parties and perused the record. Even though, alternative remedy may not be an absolute bar and this court may, in its discretion, entertain a writ petition in certain situations, we do not think that this is a case of such an exceptiona .....

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..... avoid double taxation and also to check tax evasion. The Act is based on recommendations of expert bodies. Under the Scheme of the Act, section 6 provides for liability to pay tax on "taxable turnover", as defined under section 2(zo). Under section 15 of the Act, net tax is payable after deducting the amount of input tax available from the output tax. Section 13 provides for claim of input-tax cr .....

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..... ax is not attracted, there could be no deduction of input tax in respect of such goods. Provision in rule 21 making input-tax credit inadmissible where goods are lost or destroyed or damaged, cannot be held to be contrary to the Scheme of the Act. The petition is, accordingly, dismissed without prejudice to availing of alternative remedy in accordance with law.  
Case laws, Decisions, Ju .....

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