Uttar Pradesh Value Added Tax Act, 2008 – s.7(c) and s.13(7) – The appellant-dealer claimed an input tax credit amounting to Rs. 6,42,260/- – The assessing officer, at the first instance, allowed input tax to the extent of Rs. 6,42,260/- – Subsequently, the assessing officer vide order dated 22.02.2013 made u/s.28 of the Act disallowed the claim of an input tax credit of Rs.6,42,260/- – Courts below concurrently denied the reliefs to the appellant herein – Correctness:
Held: The admitted circumstances are that the subject turnover of Rs. 1,89,35,100/- has been brought within the fold of section 7(c) of the Act read with notifications dated 24.02.2010 and 25.03.2010 – The consequence of such treatment is that the dealer was unable to sell the goods to the manufacturer-exporter without collecting the tax from the said manufacturer-exporter – For the said turnover, the dealer claims an input tax credit on the purchase tax paid by the dealer – Plainly interpreting and applying section 7(c) provides that no tax under the Act shall be levied and paid on the turnover of sale or purchase of such goods by such class of dealers as may be specified in the notification – The said exemption applies to the goods and also to the class of dealers who satisfy the conditions and fall within the notification issued under section 7(c) of the Act – Similarly, the scheme of availing input tax credit is determined by section
13 of the Act – Section 13(1) provides for allowing credit of an amount as input tax credit to the extent provided by or under the relevant clause to which the applicable condition is attracted – If the purchased goods are resold in the course of exporting the goods out of India, then the full amount of input tax credit can be claimed – Section 13(7) outlines the circumstances under which such a benefit cannot be allowed – Section 13(7) also sets out that no facility for input tax credit shall be allowed to a dealer with respect to the purchase of any goods where the sale of such goods by the dealer is exempt from tax under Section 7(c) of the Act – The prohibition from allowing input tax credit is a statutory mandate, and the view taken by the orders impugned, in the facts and circumstances of this case, is available and correct. [Paras 9 and 10]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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