The Commissioner Commercial Tax U.P. Lucknow vs. S/S Global Enterprises
Held
The Court held that the claim of input tax credit on D.E.P.B. Licence purchases, where VAT was paid on custom duty for imported goods, was legally justified. The question of law was answered in favor of the assessee.
Facts
The assessee claimed Input Tax Credit (ITC) on purchases of D.E.P.B. Licence. The Assessing Authority refused to allow this ITC, stating that value added tax was paid on the custom duty of imported goods. The Tribunal dismissed the department's appeal, upholding the assessee's claim.
Key Issues
Whether Input Tax Credit is admissible on D.E.P.B. Licence purchases when VAT was paid on custom duty for imported goods.
Sections Cited
Not specified
AI-generated summary — verify with the full judgment below
Court No. - 7 Case :- SALES/TRADE TAX REVISION No. - 480 of 2017 Applicant :- The Commissioner Commercial Tax U.P. Lucknow Opposite Party :- S/S Global Enterprises Counsel for Applicant :- Nimai Dass,S.C.
Hon'ble Surya Prakash Kesarwani,J.
Heard Sri A.C. Tripathi, learned Standing counsel for the Department/revisionist and Sri Lokesh Mittal, learned counsel for the respondent-assesse.
This revision has been filed on the following question of law: "Whether on the facts and in the circumstances of the case Commercial Tax Tribunal was legally justified in accepting the claim of input tax credit under the U.P. Value Added Tax Act raised by the dealer opposite party on usage of D.E.P.B.
Skips license while making custom duty on the imported goods?"
Briefly stated facts of the present case are that for the Assessment Year 2011-12 the Assessing Authority accepted the purchase and sale as disclosed by the assessee but refused to allow Input Tax Credit on D.E.P.B. Licence purchases amounting to Rs.54,74,123/-. On the aforesaid purchases against tax invoices, value added tax amounting to Rs.2,73,705/- was paid.
The claim of the assessee for Input Tax Credit (for short "ITC") was not allowe
The judgment continues below.
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