9911796707
TMI Blog2025 (4) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... cerned with the disallowance of the input tax credit claimed by the dealer. 2. The assessing officer in the assessment order, passed under section 28 of the Act, put the dealer on notice to hold that the dealer is not entitled to input tax credit for the purchase tax paid by him on the sales turnover made in favour of the manufacturer-exporter. The dealer explained that the case of input tax claimed by the dealer falls within the scope of section 13(1) of the Act. Even though the subject turnover falls within the ambit of section 7(c) of the Act, the proviso or exception covered by section 13(7) of the Act is not attracted. The assessing officer noted that the subject sales or the subject turnover made against Form-E was accepted by the department. The exemption from payment of tax shall not be levied and paid on the turnover of sales or purchase of such goods by such class of dealers as may be specified in the notification issued on this behalf. The notifications dated 24.02.2010 and 25.03.2010 covered the procedure for dealing with the turnover falling within section 7(c) of the Act. Therefore, the input tax benefit is provided in accordance with the scheme outlined in section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aler. Hence, the law is against the appellant, and the action of the assessing officer regarding the reversal of input tax credit is justified. 4. The dealer filed a revision before the High Court and, through an order dated 24.11.2014, the revision was dismissed. The operative portion of the order impugned reads thus: "Bare reading of the provisions of Section 13(7) clearly reveals that the applicant was *not entitled for the input tax credit with respect to the sale of goods exempted under Section 7(c) of the Act. Tribunal has considered the facts of the case and held that in view of the provisions of Section 13(7) of the Act, the applicant was not entitled for input tax credit. Under the facts and circumstances of the present case, the input tax credit was lawfully reversed by the Assessing Authority. I find no infirmity in the impugned order of the Tribunal. Question of law is answered in favour of the revenue and against the assessee." 5. Hence, the Civil Appeal. 6. Mr. Udayan Jain, learned Counsel for the appellant, contends that the denial of input tax credit is prima facie illegal and unsustainable. The notification under section 7(c) of the Act read in the context ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ications and the exception in section 13(7): "Section 7. Tax not to be levied on certain sales and purchases- No tax under this Act shall be levied and paid on the turnover of (a) xxx xxx xxx (b) xxx xxx xxx (c) such sail or purchase; or sale or purchase of such goods by such class of dealers, as may be specified in the notification issued by the State Government in this behalf" "Section 13. Input tax credit- (1) Subject to provisions of this Act, dealers referred to in the following clauses and holding valid registration certificate under this Act, shall, in respect of taxable goods purchased from within the State and mentioned in such clauses, subject to conditions given therein and such other conditions and restrictions as may be prescribed, be allowed credit of an amount, as input tax credit, to the extent provided by or under the relevant clause. (a) Subject to conditions given in column (2), every dealer liable to pay tax, shall, in respect of all taxable goods except non-vat goods, capital goods and captive power plant, where such taxable goods are purchased on or after the date of commencement of this Act, be allowed credit of the amount, as input tax credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing conditions:" xxx xxx xxx Notification dated 25.03.2010 "OFFICE OF THE COMMISSIONER, COMMERCIAL TAX, UTTAR PRADESH LEGAL SECTION LUCKNOW: DATED 25.03.2010. xxx xxx xxx In the above notification there is provision of presenting declaration in prescribed form by the Commissioner in order to take benefit of the facility for which form 'E' is prescribed. By the letter of headquarter no. VAT/form-D maintenance procedure / 2007- 2008/511/Commercial Tax dated 14.01.2008 for the purchase of diesel oil, furnace oil etc. by the manufacturer form 'D' was prescribed which was amended by letter no. 680/ dated 13-03-08. Similarly to form 'D', form 'E' is prescribed in pursuance of directions as referred in notification dated 24.02.2010 for direct sale or purchase by the manufacturer / exporters of raw material, processing material, consumable stores, spare parts, accessories, components, lubricants, fuel other that petrol and diesel and packing materials for use in manufacture of goods by him or in the packing of goods manufactured by him. The maintenance and use this will be done as per the directions given in the letter dated 13-03-09. B ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
