9911796707
TMI Blog2022 (3) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... credit may not be allowed. On the face of clear provision contained in Rule 38, Sub-Rule (3) of the Rules of 2006, the claim of input tax credit, which is otherwise available under Section 18 of the Act of 2003, may be disallowed as the mandate of law is clear that unless the dealer makes full compliance of Sub-Rule (1) and Sub-Rule (2) of Rule 38 of the Rules of 2006, input tax credit shall not be allowed. The provisions contained in Section 18 of the Act of 2003, Rule 18 of the Rules of 2006 as also Section 72 of the Act of 2003 and Rule 38 of the Rules of 2006 had to be read conjointly and not in isolated manner. It is petitioner s own admission and undisputed fact that various cash transactions were made and the authorities found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 of the Act of 2003, such benefit could not be disallowed by taking recourse to the provision contained in Section 72 of the Act of 2003 read with Rule 38 of the Rules of 2006 as they are not applicable in respect of a purchaser but will apply only in case of a seller. The Board has disallowed claim of input tax credit on the ground that the petitioner has not fully complied with the requirements of Sub-Rule (1) and Sub-Rule (2) of Rule 38 of the Rules of 2006. Input Tax Credit is available to registered dealers, other than the dealers covered by Sub-Section (2) of Section 3 or Section 5 of the Act of 2003, in respect of purchase of any taxable goods made within the State from a registered dealer to the extent and in such manner as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Rules of 2006, framed to carry out the purposes of Section 72 of the Act of 2003, casts obligation on a registered dealer, other than registered dealer who opts for payment of tax under Sub-Section (2) of Section 3 or under Section 5, making a taxable sale to issue a VAT invoice marked as original to the purchaser for each such sale made by him and further obliges him to retain a copy thereof. Sub-Rule (3) of Rule 38 of the Rules of 2006 clearly provides that no input tax credit shall be allowed unless the dealer makes full compliance of Sub-Rule (1) and Sub-Rule (2). Rule 38 of the Rules of 2006 is reproduced as below:- 38. Issuance of an Invoice. - (1) A registered dealer, other than registered dealer who opts for paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e selling dealer, to the purchasing dealer with the following declaration recorded in the red ink and signed by the selling dealer or his declared business manager as the case may be:- Declaration I, hereby declare that this is the duplicate VAT invoice of VAT invoice No..........issued on dated........and issued to M/s............. having registration No.......... Signature Status............ . (b) The purchasing dealer who has obtained the duplicate copy of the VAT invoice shall inform his assessing authority or the authorized officer within the tax period in which the duplicate invoice was received. (5) A registered dealer, who has opted for payment of tax under sub-section (2) of section 3 or under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of IT enabled systems for preservation of the details of the VAT invoice. The claim of input tax credit by a registered dealer is required to be examined taking into consideration not only Section 18 of the Act of 2003 providing for input tax credit, but also other provisions contained in the Act of 2003 as also the Rules framed under the Act of 2003. While Section 18 of the Act of 2003 provides for input tax credit, Section 72 of the Act of 2003 read with Rule 38 of the Rules of 2006 provides contingencies when input tax credit may not be allowed. On the face of clear provision contained in Rule 38, Sub-Rule (3) of the Rules of 2006, the claim of input tax credit, which is otherwise available under Section 18 of the Act of 2003, ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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