9911796707
TMI Blog2016 (1) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... Special Economic Zone, at Rachenahalli, Nagavara Outer Ring Road, vide order dated 23-4-2007, issued by the Development Commissioner, Cochin, SEZ, Cochin, the authorities specified by the Central Government in this behalf. As per the policy of Government of India, as a SEZ Developer, the assessee is entitled for refund of input tax paid on purchases from the local registered dealers and the contractors. The assessee filed returns in Form VAT-100 before the jurisdictional LVO-020 as prescribed under the KVAT Act for the Tax period from April 2009 to May 2010 and claimed refund of input tax paid on purchases on the ground that the assessee is a developer of SEZ at Rachenahalli. The dealer has submitted a detailed purchase statement and SEZ monthly report copies for verification. The Assessing Officer after verifying the purchase statement submitted by the dealer noticed that the dealer has claimed input tax credit in a particular tax period related to purchase of some other months. Accordingly, issued an endorsement dated 31-3-2011 proposing to disallow the input tax claimed by the dealer. In response to the said endorsement, the dealer has filed objections to the said proposition n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluding electronic methods, and shall pay the tax due on such return within 20 days, after the end of the preceding month or any other tax period as may be prescribed. Section 35(4) of the KVAT Act provides for furnishing revised returns, if any dealer having furnished a return under the Act discovers any omission or incorrect statement therein other than as a result of an inspection or receipt of any other information, within six months from the end of relevant tax period. In the instant case, belated claim has been made and there is an inordinate delay in claiming refund of input tax credit. The assessee can claim the input tax credit in respect of each tax period within 20 days or 15 days at the end of preceding month or any other tax period as may be prescribed. The assessee is not entitled for the benefit of input tax claim made beyond six months. If there is any error in furnishing the returns, he can file revised return within a period of six months as provided under Section 35(4) of the Act. The order passed by the Tribunal holding that there is no limitation prescribed for claiming the input tax credit by interpreting Section 20(2) of the KVAT Act is contrary to law and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Act overrides Section 35(4) of the KVAT Act? (3) Whether in the facts and circumstances of the case input tax claim by a SEZ unit being a dealer can avail the benefit of input tax without following the mandatory requirements of the KVAT Act? 7. We have heard the arguments addressed by the learned counsel for the parties and perused the order impugned and other relevant records. 8. The respondent-assessee is a developer of Special Economic Zone at Rachenahalli as per the permission granted by the Government of India. As per the policy of the Government of India, the assessee is eligible for refund of tax paid on purchases from the local dealers for the purpose of development, operation or maintenance of the processing area in a Special Economic Zone. In order to give the said benefit to those SEZ developers, sub-section (2) of Section 20 of the KVAT Act has been inserted to the Act, by Act No.6/2007 and Rule 130A has been inserted vide notification dated 26-07-2007, which was given effect to from 01-04-2007. 9. Section 20 and Rule 130A of the KVAT Act reads as under: 20. Deduction of input tax on exports and inter State sales, [and to special economic zone units and develop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of the preceding month or any other tax period, as may be prescribed. However, if there is any omission or incorrect statement therein, the dealer can file revised return within a period of 6 months. Since the assessee did not file the revised return within a period of six months, belated returns cannot be accepted and rejected the claim for refund of input tax credit. However, granted the relief only to the extent of Rs. 84,95,621/-. Being aggrieved by the same, the assessee preferred an appeal before the First Appellate Authority. The First Appellate Authority partly allowed the appeals and gave certain reliefs. Being aggrieved by the same, the assessee preferred appeals before the Karnataka Appellate Tribunal. The Appellate Tribunal after examining the matter, granted the relief holding that there is no express provision under the KVAT Act or Rules made thereunder prescribing the dealer claiming input tax credit only in the month in which the tax invoice is raised by the Seller. Being aggrieved by the said order of the Tribunal, the Revenue has preferred these revision petitions. 11. A reading of Section 20(2) read with Rule 130A of the KVAT Act and Rules makes it very clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return at any time within a period of six months from the end of relevant tax period. The case on hand does not fall under Section 35(4) of the KVAT Act. 12. In the instant case, there is some delay in claiming refund of input tax because of many reasons. The refund of input tax cannot be denied on the ground of belated claim. A reading of Section 20(2), which is a beneficial legislation, makes it very clear that the developer of Special Economic Zone or an Unit located in any Special Economic Zone is entitled for the refund of input tax credit or deduction from the output tax payable by such dealer. Section 20(2) does not contemplate any period within which, such developer shall claim refund of input tax. Further, Rule 130A which was inserted w.e.f. 1-4-2007 also does not contemplate the period within which the developer shall claim the refund of input tax. Section 35 cannot control Section 20(2). The benefit of beneficial legislation has to be extended to the SEZ dealers. The technicalities shall not come in the way of giving some reliefs. Hence, Section 20(2) has a over-riding effect against Section 35 of the Act. The Tribunal, after examining the matter, has given the relief. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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