ALD AUTOMOTIVE PVT. LTD. versus THE COMMERCIAL TAX OFFICER NOW UPGRADED AS THE ASSISTANT COMMISSIONER (CT) & ORS.

Citation: [2018] 13 S.C.R. 217 · Decided: 12-10-2018 · Supreme Court of India · Bench: A.K. SIKRI · Disposal: Leave Granted & Dismissed

Cited by 1 judgment(s) · cites 6 · see the full citation network in Lexace

Judgment (excerpt)

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ALD AUTOMOTIVE PVT. LTD.
v.
THE COMMERCIAL TAX OFFICER NOW UPGRADED AS THE
ASSISTANT COMMISSIONER (CT) & ORS.
(Civil Appeal Nos. 10412-10413 of 2018)
OCTOBER 12, 2018
[A. K. SIKRI AND ASHOK BHUSHAN, JJ.]
Tamil Nadu Value Added Tax Act, 2006: s. 19(11) – Input Tax
Credit – Claim of – Entitlement to – On facts, appellant-assessee
claiming input tax credit of the amount of tax paid on the purchases
– Appellant could not claim the input tax credit, when it filed its
return for the assessment year 2007-2008 for want of tax invoices
– Appellant filed revised returns on 6.10.2008 claiming input tax
credit on the receipt of the tax invoices from the dealer – Assessing
Authority relying on time limit u/s. 19(11) denied the benefit of input
tax credit since it was belated – Writ petition by assessee – Rejection
of, upholding validity of s. 19(11) – On appeal, held: There is no
infirmity in the judgment of the High Court upholding the validity
of s. 19(11) – Input credit is in nature of benefit/ concession extended
to dealer under the statutory scheme and is to be strictly construed
– When the input tax credit is to be allowed and when it is to be
disallowed is elaborated in s. 19 which is self-contained scheme
and benefit u/s.3(3) can be claimed only when conditions as
enumerated in s. 19 are fulfilled – Statutory scheme delineated by
s.19(11) neither can be said to be arbitrary nor can be said to
violate the right guaranteed to the dealer u/Art. 19(1)(g) of the
Constitution – S. 19(6) to s.19(10) are not inconsistent to s.3(3)
which permits reduction of tax of registered dealer – S. 19(11) allows
an extended period for Input Credit which if not claimed in any
month can be claimed before the end of the financial year or before
the 90 days from the date of purchase whichever is later – Provision
of s. 19(11) is an additional benefit given to dealer for claiming
Input Credit in extended period – Use of word ‘shall make the claim’
needs no other interpretation – Thus, time period as provided in s.
19(11) is mandatory – There is no power conferred on any authority
under the Act to dilute the mandatory requirement u/s.19(11) – Statute
[2018] 13  S.C.R. 217
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SUPREME COURT REPORTS
[2018] 13  S.C.R.
having not given any indication for extension of time which is a
condition for claiming Input Tax Credit, the period could not have
been extended by assessing authority.
Dismissing the appeals, the Court
HELD: Whether Section 19(11) violates Article 14 and 19(1)(g)
of the Constitution of India  and whether Section 19(11) is
inconsistent to Section 3(3) of the Tamil Nadu Value Added Tax
Act, 2006.
1.1. Input Tax Credit is being allowed under Section 3 of
the Tamil Nadu Value Added Tax Act, 2006 which is provision on
“levy of taxes on sale of goods”. Section 3 is a charging section
which provides for levy of taxes on sale of goods. Sub–section
(3) is the part of the same scheme where tax payable under sub–
section (2) by registered dealer shall be reduced, in the manner
prescribed, to the extent of tax paid on his purchase of goods.
[Para 19][231-B]
1.2 Section 3 (3) provided that tax payable under sub–
Section (2) by registered dealer shall be reduced, in the manner
prescribed, to the extent of tax paid on his purchase of goods
specified in Part–B and Part–C of the First Schedule inside the
State, who is registered dealer who sold the goods to him. The
provision of Section 3 sub–Section (3) is a provision which entitled
a registered dealer to obtain a tax credit which has been explained
in Section 19. The submission that Section 19 is inconsistent to
Section 3(3) is wholly misconceived. What is envisaged in Section
3 sub–Section (3) is amplified and explained in Section 19. The
reduction in the tax as contemplated in Section 3 sub–section (3)
has to be in manner and as provided in Section 19. Section 19(11)
contains a condition for claiming the input tax credit. There are
other various provisions in Section 19 itself where it contains
provisions where no input tax credit is allowable, e.g. Section 19
(6) to Section 19 (10). [Para 21][231-H; 232-A-C]
1.3 Section 19(6) to Section 19(10) are not inconsistent to
Section 3(3) which permits reduction of tax of registered dealer.
When the input tax credit is to be allowed and when it is to be
disallowed is elaborated in Section 19 which is self–contained
scheme and benefit under Section 3 sub–Section (3) can be
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claimed only when condit

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