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TMI Blog2016 (5) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... liability to pay VAT in respect of such increased component, benefit under the proviso ceased to be applicable. The proviso cannot be given operation beyond the element of increase, so much so that even after complete roll back, the benefit in respect of that amount must operate. That certainly was not the intent. The idea was to grant benefit only in respect of that element of VAT respecting increase in rates and not beyond. If that component of increase ceased to be in existence, the benefit of proviso also ceased to be in operation. Therefore, the view taken by the High Court and the Appellate Authority are affirm. - Decided against the appellant - Civil Appeal No.5103/2016 @ SLP (C) No(s). 15206/2012 - - - Dated:- 13-5-2016 - T.S. THAKUR, CJI AND UDAY UMESH LALIT, J For the Petitioner : Mr. Hrishikesh Baruah,Adv. For the Respondent: Mr. D. S. Mahra,Adv. WITH C.A. No.5104 of 2016 @ SLP(C) No.15274/2012, C.A. No.5105 of 2016 @ SLP(C) No, 15275/2012, C.A. No.5106 of 2016 @ SLP(C) No. 15279/2012, C.A. No.5107 of 2016 @ SLP(C) No. 15374/2012, C.A. No.5108 of 2016 @ SLP(C) No.15379/2012, C.A. No.5109 of 2016 @ SLP(C) No.15680/2012, C.A. No.5110 of 2016 @ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DELHI No.F1[13/Pll/VAT/Act/2006/2069 Dated 20th June, 2006 MEMORANDUM In pursuance of the ordinance dated 20.06.2006 [copy 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 the 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. [HANS RAJ] ADDITIONAL COMMISSIONER [POLICY] 4. On 21.06.2006 an Ordinance was promulgated by the Lieutenant Governor inserting a proviso to the definition Sale Price in Section 2(1)(zd) of the Act. Said Section after such insertion of the proviso reads as under: (zd) sale price means the amount paid or payable as valuable consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ways includes the tax payable by it on making the sale, if any. (The proviso for the sake of convenience has been highlighted in italics.) 5. On 24.11.2006 Delhi Value Added Tax (Amendment) Act, 2006 came into force. While repealing the Ordinance, Section 2 of the Amendment Act provided as under: 2. Amendment of Section 2:- In the Delhi Value Added Tax Act, 2004 [Delhi Act 3 of 2005] [hereinafter referred to as the Principal Act ], in Section 2, in sub-section (1), in clause [zd], before the Explanation occurring at the end thereof, the following provisos shall be inserted, namely 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 June, 2006 shall not form part of the sale price of petrol and diesel sold on and after the date of the commencement of the Delhi Value Added Tax [Amendment] Act, 2006 till such date as the Government may, by notification in the Official Gazette direct: Provided further that the first proviso shall not take effect till the benefit is passed on to the consumer. 6. On 30.11.2006 there was par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices as aforesaid having called upon the appellants to pay VAT and penalty, objections were taken by each of the appellants under Section 74 of the Act which were rejected by the Additional Commissioner III, Department of Trade and Taxes, Government of National Capital Territory of Delhi vide Common order dated 04.08.2008. It was observed: The amendment clearly says that to extend relief from the increase made in the price level of 05-06-2006 Govt. declared to forgo the VAT on the increased portion taking effect from 06-6-2006. The base price fixed by the Govt. in deciding the exemption was the price level prevailing on 05.05.2006. The amendment was made only to stop the prices from further increase. The Govt. had no intention to allow any relief on the price level prevailing on 05.06.2006 and if any intention would have been there then such an amendment should have been made prior to 06.06.2006. Now, with the reduction in price on 30-11-06 and 16-02-07 the prices came down to the level of 05.06.2006 and with prices coming at the level it is implied that, the exemption allowed in VAT would cease as this would not be in conformity with the intentions of the legislature. The not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he increased component, in the liability to pay Vat then it was immaterial when there was complete roll back or when the Notification was issued as per this proviso. Thus in our considered view, the submission of the Ld. Counsel 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. 12. The appellant-companies being aggrieved in so far as the interpretation placed on the first proviso to Section 2(1)(zd) of the Act was concerned, preferred appeals under Section 81 of the Act before the High Court. The High Court took the view that upon the partial roll back w.e.f. 30.11.2006 and upon the complete roll back w.e.f. 16.02.2007 benefit of the proviso ceased to be partly or fully applicable. According to the High Court the proviso simply protected and gave exemption in respect of enhanced ad valorem VAT payable on account of increase in petrol and diesel from 06.06.2006 and the benefit under the proviso ceased to operate partly and fully ..... X X X X Extracts X X X X X X X X Extracts X X X X
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