2018 (1) TMI 555 - SCH - VAT / Sales Tax

Challenge dismissed; Section 9(2)(g) Delhi VAT Act upheld, denying input tax credit where VAT not deposited

Commissioner of Trade And Taxes Delhi Versus Arise India Limited, On Quest Merchandising India Pvt. Ltd.

The SC dismissed the special leave petition and declined to interfere with the impugned HC order upholding the constitutional validity of Section 9(2)(g) ... Input tax Credit - Constitutional validity of Section 9 (2) (g) of the Delhi Value Added Tax, 2004 - Articles 14 and 19 (1) (g) of the Constitution of India - failure to deposit VAT collected from its buyers, which included SCT - the decision in the case of On Quest Merchandising India Pvt. Ltd., Suvasini Charitable Trust, Arise India Limited, Vinayak Trexim, K.R. Anand, Aparici Ceramica, Arun Jain (HUF), Damson Technologies Pvt. Ltd., Solvochem, M/s. Meenu Trading Co., & Mahan Polymers Versus Government of NCT of Delhi & Ors. & Commissioner of Trade & Taxes, Delhi And Ors. [2017 (10) TMI 1020 - DELHI HIGH COURT] contested - Held that: - we are not inclined to interfere with the impugned order. The special leave petition is dismissed. The Supreme Court affirmed the impugned order, stating it was 'not inclined to interfere' and that 'The special leave petition is dismissed.' The Additional Solicitor General represented that a batch of petitions were decided by the impugned order and that in some cases 'the purchase transactions are not bonafide' similar to the present case; such matters 'ought to have been remitted back to the competent authority.' Liberty was granted to the petitioner to move the High Court with necessary particulars for directions in that behalf. All pending application(s) were directed to 'stand disposed of.' The decision thus refuses interference with the challenged order while recognizing possible non-bona fide transactions in related matters and permitting remittal via High Court proceedings.