Can time limit be prescribed by law for availment of ITC

In this article the author wishes to throw light on the legality of the provision restricting the time limit for availment of Input tax credit in the light of judicial pronouncement by Supreme Court of India in the case of ALD AUTOMOTIVE PVT. LTD. VERSUS THE COMMERCIAL TAX OFFICER NOW UPGRADED AS THE ASSISTANT COMMISSIONER (CT) & ORS. [2018 (10) TMI 814 - SUPREME COURT]

Facts

The assessed was engaged in business of leasing and fleet management of the motor vehicles however it could not claimed input tax credit of tax paid on purchases while filing its regular returns but could claimed only while filing belated revised returns.

Discussion

The statutory scheme delineated under the provisions neither can be said to be arbitrary nor can be said to violate the right guaranteed to the dealer under article 19(1)(g) of the Constitution of India.

The condition under which the concession and benefit is given is always to be strictly construed. In event, it is accepted that there is no time period for claiming input tax credit, the provision becomes too flexible and give rise to large number of difficulties including difficulty in verification of claim of input tax credit. Taxing statutes contain self-contained scheme of levy, computation and collection of tax. The time under which a return is to be filed for purpose of assessment of the tax cannot be dependent on the will of a dealer.

Decision

The input tax credit is in nature of benefit/concession extended to dealer under the statutory scheme. The concession can be received by the beneficiary only as per the scheme of the statute. It is a clear authority with proposition that input tax credit is admissible only as per conditions enumerated under section 19.