M/S H R B Chemical P Tld, Sonepat vs. State Of Haryana & Others

Held

The Court held that the issue at hand was identical to the one decided in 'M/s Enkay (India) Rubber Company Private Limited, Gurgaon vs. State of Haryana' by this Court on 23.05.2018. In that prior case, the Tribunal had not considered the provisions of Section 8 of the Haryana VAT Act. Consequently, the High Court had set aside the Tribunal's order and remanded the matter back for fresh adjudication. Following this precedent, the present appeals were also disposed of. The Court set aside the order passed by the Haryana Tax Tribunal and remitted the matter back to the Tribunal for a fresh decision. The Court directed that the present matters be listed before the Tribunal on 08.08.2018, to be taken up along with a previously remanded appeal pending before the Tribunal.

Facts

The appellant, M/s H. R. B. Chemical Pvt. Ltd., Sonepat, filed four appeals before the Punjab and Haryana High Court against an order dated 07.07.2017 passed by the Haryana Tax Tribunal. The appeals pertained to the assessment year 2009-10. The core dispute involved the eligibility of input tax credit (ITC) on tax paid for the purchase of a Duty Exemption Passbook (DEPB) license, which was allegedly used for importing raw materials utilized in manufacturing goods for sale. The appellant contended that the Tribunal had not properly considered the provisions of Section 8 of the Haryana VAT Act in its decision. The parties agreed that an identical issue was previously addressed by the High Court in 'M/s Enkay (India) Rubber Company Private Limited, Gurgaon vs. State of Haryana', where the matter was remanded to the Tribunal for fresh consideration.

Key Issues

1. Whether the assessee appellant is entitled to input tax credit on tax paid on the purchase of a DEPB license, which was used in the import of raw material that was subsequently used in the manufacture of goods for sale, under the Haryana VAT Act. This question turns on the interpretation of the provisions related to input tax credit and the eligibility of DEPB licenses. 2. Whether the provisions of Section 8 of the Haryana VAT Act have been complied with by the authorities. This issue concerns the procedural adherence to the specified section of the Act. Contentions of the Appellant: The appellant argued that they are entitled to ITC on the DEPB license as it was instrumental in importing raw materials for manufacturing goods for sale. They also contended that the Tribunal failed to adequately consider Section 8 of the Haryana VAT Act in its previous order. They relied on the High Court's decision in 'M/s Enkay (India) Rubber Company Private Limited, Gurgaon vs. State of Haryana'. Contentions of the Revenue/State: The judgment records that learned counsel for the parties were 'ad idem' (in agreement) regarding the identical nature of the issue with a previous case, suggesting the State did not present a distinct argument against the remand.