Input tax credit denied on unpaid purchase tax under Punjab VAT law, with prior rulings controlling the dispute.

Input tax credit under the Punjab VAT Act was claimed on purchase tax that was payable but not actually paid. Following earlier decisions on the same issue, the Court held that credit cannot be allowed unless the tax has been actually paid, so the claim for input tax credit failed. Questions relating to levy of purchase tax, penalty and interest were treated as already settled by prior judgments and did not require fresh adjudication. The appeals were therefore dismissed as without merit.

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Issues: Whether input tax credit could be allowed on purchase tax payable under the Punjab VAT Act, 2005 when such purchase tax had not actually been paid.

Analysis: The appeals were governed by earlier decisions on the same point. The Court noted that the claim for input tax credit was founded on purchase tax liability under Section 19 of the Punjab VAT Act, 2005, but the tax had not been paid. Following the earlier view that no credit can be granted for tax not actually paid, the contention was rejected. The remaining questions relating to levy of purchase tax, penalty and interest were treated as already concluded by prior judgments and did not survive for fresh adjudication.

Conclusion: Input tax credit on unpaid purchase tax was not allowable, and the assessee failed on the only issue requiring consideration.

Final Conclusion: The appeals were devoid of merit and stood dismissed.

Ratio Decidendi: Input tax credit cannot be claimed on purchase tax that is merely payable but has not actually been paid.

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