9911796707
TMI Blog2017 (2) TMI 1132X X X X Extracts X X X X X X X X Extracts X X X X ..... ntial question of law as to the correct interpretation of Section 9(2)(g) of the Act. 2. The assessee is a registered dealer which had claimed input tax credit of Rs. 6,31,264/- on purchases made against tax invoices issued by two selling dealers, i.e. M/s. Riya Enterprises and M/s. Salasar Traders. The claims were disallowed by the VATO with the rationale that the firm's registrations had been cancelled and default assessment of tax and interest under Section 32 of the Act were completed. The assessee was unsuccessful before the appellate authority, i.e. the Objection Hearing Authority (OHA) and therefore, approached the VAT Tribunal. 3. The Tribunal analysed the provision, i.e. Section 9(2), following the decision of this Court in Shant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er's behaviors vis-a-vis the letter's VAT returns. Indeed, section 28 stipulates confidentiality in such matters. " 11. Coming to the facts of the case, the Ld Assessing Authority rejected the ITC on the sole ground that Registration Certificate of the selling dealers has been cancelled. Ld OHA while upholding the orders of the Ld VATO inter alia observed that "The VATO has submitted that the department has lodged an FIR against M/s Riya Enterprises and 15 other firm bearing FIR No. 249/09 dated 29.11.2009 u/s 420/468/471/1208 IPC PS EOW New Delhi and investigation is under process. The VATO also forwarded a letter of office of Assistant Commissioner of Police, CST, EOW, Crime Branch No. 4562/R/ACP/CBT/EOW/Crime branch dated New ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates confidentiality in such matters. Nor is this Court in agreement with the Tribunal‟s opinion that insertion of clause (g) to Section 9(2) is clarificatory. As observed earlier, Section 9(2) is an exception to the general rule granting input tax credit to dealers who qualify for the benefit. The conditions for operation of the exception are well defined. The absence of any condition such as the one spelt out in clause (g) and its addition in 2010 rules out legislative intention of its being a mere clarification of the law which always existed. This Court is further of the opinion that the Bombay High Court judgment in M/S.Mahalaxmi Cotton Ginning is of no assistance to the revenue, because there, the Court had to deal with the Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
