Disposed

M/S Shiv Edibles Ltd. v. C T O Enti EVASION-1 Kota and Others

Rajasthan HC6 Feb 2015STR/200/2012

Case brief

AI extract

What is this about?

The High Court disposed of a VAT Revision Petition by following a previous High Court judgment regarding input tax credit disallowance and penalty u/s 61, subject to a specific rider pending the outcome of a special leave petition before the Supreme Court.

What did the court decide?

Petition disposed with a rider dependent on the Apex Court decision in CTO vs. M/s. Durgeshwari Food Limited.

M/S Shiv Edibles Ltd. Vs C T O Enti EVASION-1… — Writ and Judicial Review | Rajasthan HC (2015)

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IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR *** JUDGMENT

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SB Sales Tax (VAT) Revision Petition no.200/2012

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M/s Shiv Agrevo Limited , Village Kalmanda, Baran

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Commercial Taxes Officer, Anti Evasion-I, Udhyog Marg, Kota and ors

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Date of Judgment ::: 6.2.2015

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PRESENT

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HON'BLE MR. JUSTICE J.K. RANKA

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Ms.Prakash Yadav for the petitioner

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1.In the instant petition, the Tax Board vide impugned order on the issue of input tax credit has observed that this court in the case of CTO Vs. M/s. Durgeshwari Food Limited, Shri Ganganagar (2012) 32 Tax Update 03, has reversed the order passed by the Tax Board holding as under:-

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“ In the considered opinion of this Court, therefore, in view of specific provisions contained in Section 18 of the VAT Act of 2003, the ratio of the judgments relied upon by the learned counsel for the respondent-assessee would in fact support the case of the Revenue, and as a necessary corollary, it deserves to be held following these aforesaid judgments, that input tax credit in the present case, was rightly reduced and was allowed only proportionately to the extent of manufacturing and sale of taxable goods by the assessee in the present case, namely, “Aata”, “Maida” and “Suji”, manufactured out of raw

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material (wheat) and such input tax credit could not be allowed to the extent of sale of VAT exempted goods, namely, wheat bran (Chaff/Chokar), which has been assessed by the Assessing Authority to the extent of 25% of the input tax credit and reverse tax has been imposed on the respondent-assessee.

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Therefore, as far as impugned order of learned Tax Board dated 13.03.2009 to the extent of setting aside the imposition of reverse tax disallowing the proportionate input tax credit is concerned, the same cannot be sustained and deserves to be quashed by this Court, and to that extent the revision petitions filed by the petitioner-Revenue deserve to be allowed.

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However, as far as question of penalty u/s 61 of the Act is concerned, the imposition of the same by the Assessing Authority under Section 61 of the Act of 2003 to the extent of double the amount of tax is concerned, the same cannot be sustained and deletion of penalty in these circumstances, where a debatable question was agitated by the respondent-assessee before the appellate forums created under the Act, it cannot be said that the assessee deliberately filed wrong returns or particulars of taxable turnover or malafide claimed 100% input tax credit. A benefit of doubt in this regard certainly goes in favour of respondent-assessee.”

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2.Accordingly, when similar view has already been taken by this Court on identical facts, there is no reason to deviate with the judgment rendered in CTO Vs. M/s. Durgeshwari Food Limited, Shri Ganganagar(supra).

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3.At his juncture, counsel for the petitioner canvassed that the Hon'ble Apex Court in the case of M/s. Durgeshwari Food Limited, Shri

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Gangangar (supra), has admitted special leave petition and contends that the present petition be kept pending till disposal of appeal by the Hon'ble Apex Court or in the alternative she contends that whatever order will be passed by the Hon'ble Apex Court in SLP by the Hon'ble Apex Court in the case of M/s. Durgeshwari Food Limited, Shri Gangangar (supra), should also govern the fate of the instant revision petition.

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4.Accordingly, the revision petition stands disposed of in the light of judgment rendered in the case of M/s. Durgeshwari Food Limited, Sri Gangangar (supra), with a rider that in case the judgment by Hon'ble Apex Court is decided in favour of the assessee in that case then this revision petition will be governed by the verdict of the Hon'ble Apex Court in SLP in the case of Durgeshwari Food Limited, Shri Ganganagar.

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Certificate:All corrections made in the judgment/order have been incorporated in the judgment/order being e-mailed. Om Prakash PA

M/S Shiv Edibles Ltd. v. C T O Enti EVASION-1 Kota and Others

Case brief

What is this about?

What did the court decide?

M/S Shiv Edibles Ltd. v. C T O Enti EVASION-1 Kota and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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