TaxTMI 
TaxTMI 
2012 (3) TMI 51
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....he present appeals under Section 81 of the Delhi Value Added Tax Act, 2004 (Act, for short) impugning the order dated 1st December, 2011 passed by the Appellate Tribunal Value Added Tax (tribunal, for short). It is submitted that the present appeals raise substantial questions of law as interpretation of proviso to Section 2(1)(zd) of the Act is required and the interpretation placed by the tribunal is vitiated and incorrect. 2. The facts are not in dispute. The appellants are Government undertakings marketing petrol, diesel and petroleum products. 3. Value Added Tax (VAT, for short) on ad valorem rate is payable on the said products. 4. On 1st June, 2006, Government of India increased rates of petrol and high speed diesel b....
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....the amount paid or payable as valuable consideration for any sale, including- (i) the amount of tax, if any, for which the dealer is liable under section 3 of this Act; (ii) in relation to the delivery of goods on hire purchase or any system of payment by installments, the amount of valuable consideration payable to a person for such delivery including hire charges, interest and other charges incidental to such transaction; (iii) in relation to transfer of the right to use any goods for any purpose (whether or not for a specified period) the valuable consideration or hiring charges received or receivable for such transfer; (iv) any sum charged for anything done by the dealer in respect of goods at the time of , or before, the de....
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.... Provided further that the first proviso shall not take effect till the benefit is passed on to the consumers. Explanation:-A dealer's sale price always includes the tax payable by it on making the sale, if any;" (The proviso for the sake of convenience has been highlighted in italics.) 7. On 30th November, 2006, there was partial roll back of prices enhanced with effect from 6th June, 2006. The prices were again rolled back to pre 6th June, 2006, with effect from 16th February, 2007. 8. The contention of the appellants, which has been rejected by the tribunal, is that the proviso inserted to Section 2(1)(z) should be interpreted in the manner that the benefit of reduction of 0.66 paise per litre of petrol and 0.22 paise per....
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....ec. 2(1)(zd) as a valuable consideration for any sale including amount of tax payable under the Act. (emphasis in bold) Thus if a state Govt. wants to give relief against the price increased by the Central Govt. the it could only do so by not charging tax on the increased portion but for doing so it had to exclude the increased portion from the purview of the expression „valuable consideration for any sale'. In our considered view purpose of the Govt of NCT of Delhi in introducing the proviso in question, when considered from the plain language of the proviso, was to direct the appellant dealers to continue to pay the VAT as if there was no increase in the prices by the Central Govt. In our considered view, the act of the Govt. of NCT....
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....cludes the amount of tax, if any, duty of central excise, customs duty etc. The last part of the main sub-section stipulates that words „purchase price‟ and all their grammatical variations and cognate expressions, shall be construed accordingly. The proviso which was incorporated on 21st June, 2006, has to be given a normal and natural meaning keeping in mind the context, object and reason for its insertion and incorporation. Section 2(1)(zd) has to be read in entirety to understand the effect and purport of the proviso. Further, the proviso cannot be read in a piecemeal ignoring the middle part thereof and with reference to the first part and as the last part of the proviso. The central or the middle portion of the proviso spe....