M/S Goyal Niwar And Tape Factory vs. The Commissioner Commercial Tax U.P.

The present revision has been filed against the order dated 27th August, 2015 by which the rectification application of the revisionist has been disposed of directing the Assessing Authority to pass an appropriate order in pursuance of order passed by the Tribunal on 12th March, 2015. 2. Counsel for the revisionist submits that while passing the order dated 12th March, 2015, the reversal of input tax credit was recalled. Moreover, though some part of the determination with regard to purchases from unregistered dealer was also accepted but the levy of tax on such purchases has not been clarified by the Tribunal. So to clarify the said fact an application for rectification was moved which was disposed of directing the Assessing Authority to pass an appropriate order in pursuance of the observations made by the Tribunal in its order dated 12th March, 2015. Counsel for the revisionist has also filed a supplementary affidavit bringing on record the order passed by the Assessing Authority on 29.12.2016 by which the tax imposed on the goods purchased from unregistered dealer has not been dealt with. He prays that an appropriate direction be issued to the Tribunal that rectification order dated 15th March, 2015, be modified to that extent.

Learned Standing Counsel opposed the submissions of learned counsel for the revisionist and submits that the order dated 12th March, 2015 is very clear as the purchases made

After considering the submissions advanced by learned counsel for the parties, the Court has perused the record.

Admittedly, the Tribunal while passing the order dated 12th March, 2015 has accorded input tax credit of Rs. 1,43, 029/- in favour of the dealer. From a perusal of the First Appellate order, it is clear that input tax credit of the said amount was reversed. The finding of the First Appellate Authority is quoted hereinbelow:- "उक्त विविविेचना वके वआधार वपर वव्यापारी वद्वारा वदािखिल वअपील वआंशिशिक वरूप वसे स्विीकार वयोग्य वपायी वगयी। व्यापारी वद्वारा वघोिषित वखिरीद- िबिक्री वके वआंशकड़ो वको वमान्यता वप्रदान वकरते वहुए वप्रान्तीय व विाद वमे विनम्न वप्रकार वकर विनधार्धारण विकया वजाना वऔचिचत्यपूर्णर्धा वहोगाः- करिनधार्धारण विकया वजाना वऔचिचत्यपूर्णर्धा वहोगाः- मैटल वपाटर्धास वकी वऐसी वघोिषित वखिरीद विजसे व अपंशजीकृत वसे वमाना वजा वरहा वहै व ब्रास वस्क्रेप वकी वऐसी वघोिषित वखिरीद विजसे व अपंशजीकृत वसे वमाना वजा वरहा वहै रू० व 9,76,160/ रू० व 2,25,036/ 13.5 % 5%

From perusal of the aforesaid chart, it is evidently clear that the purchases of metal parts and brass scrap was treated to be purchased from unregistered dealer and accordingly, tax of Rs. 1,43,033/- was imposed and consequently the input tax credit claimed by the dealer was reversed by a sum of Rs. 1,43,028/-. Once the Tribunal accorded the input tax credit in favour of the dealer for the said amount, it goes without saying that the purchases so far made from unregistered dealer treated as to be made from registered dealer. The tax to that extent should have also been calculated accordingly but the Tribunal has miserably failed to consider that accept of the matter in the rectification application.

In view of the above, the matter is remanded to the Tribunal to reconsider the dealer's rectification application to the extent of deleting the tax treating it to be from unregistered dealer.

The revision is allowed, accordingly,.

It is desirable that the Tribunal be decide the issue within a period of two months from the date of production of certified copy of this Court.

Counsel for the revisionist undertakes to serve a certified copy of this order before the Tribunal within ten days from today. In the event, copy of this order is not produced before the Tribunal by counsel for the revisionist within the time framed above, this order shall not be given effect to. Order Date :- 31.3.2022/Shiraz Judicature at Allahabad