2009 (1) TMI 789

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rovisions of section 14 of the VAT Act and rule 25(1)(b) of the Punjab Value Added Tax Rules, 2005 (for brevity, "the VAT Rules"). Brief facts necessary for disposal of the controversy raised are that the VAT Act has come into force with effect from April 1, 2005, which has repealed the Punjab General Sales Tax Act, 1948 (for brevity, "the Sales Tax Act") with effect from March 31, 2005. It is pertinent to notice that under section 5(1A) of the Sales Tax Act the State Government has declared various goods on which tax was levied at the first stage of sale and under proviso to the section, sale of such goods at a subsequent stage was exempted from imposition of tax, which was subject to the condition that the dealer effecting the sale at ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....aside the order of the designated officer and remanded the case to him for passing a fresh order after hearing the respondent. He was required to pass a speaking order as per law (A2).   After the remand, the matter was decided by the designated officer on November 30, 2006 (A3), who rejected the claim of the respondent for input-tax credit on the stock held on March 31, 2005 by recording a finding that it was filed after a period of 45 days. The appeal filed by the respondent under section 62 of the VAT Act against the order of the designated officer was dismissed on March 29, 2007 by the appellate authority (A4). Against the order of the first appellate authority, the respondent filed further appeal before the Tribunal under secti....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....elay of 34 days in making the claim. As such, it is to be presumed that the claim had been made on June 18, 2005 as per the contention of the appellant. When it was made before the publication of the Rules, then it would have been appropriate for the authorities below to have condoned the delay and allowed ITC claim, as per section 14 read with rule 25 of the Act." We have heard learned State counsel and have perused the paper book with his able assistance. It is undisputed that the VAT Rules with regard to filing of input-tax credit claim were published on June 21, 2005. According to rule 25 of the VAT Rules framed in pursuance of section 45 of the VAT Act, a statement in respect of input-tax credit claim could have been submitted withi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....istration has been continued under section 21, shall be entitled to input-tax credit in respect of the tax paid or payable under the repealed Act on the goods, other than capital goods, lying in stock with him on the appointed day, to such extent and in such manner and subject to such conditions, as may be prescribed. He shall, however, be eligible for input-tax credit on capital goods, if he is in the business of resale of such goods: Provided that such stock is out of the purchases made within twelve months prior to the appointed day. (2) The taxable person, who intends to claim input-tax credit under sub-section (1), shall within forty-five days from the appointed day, furnish in the specified form to the designated officer, a s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is given from the "appointed day", i.e., April 1, 2005, no dealer could have filed his input-tax credit claim nor could the claim be filed with effect from April 24, 2006 when further period of 15 days was granted from that date. It is wellsettled that the law does not contemplate doing of an impossible act. The legislative intent is clear from the reading of sections 13 and 14 of the VAT Act, which allow a dealer to claim input-tax credit subject to various other conditions. It is also clearly made out that period of 45 days is intended to be given to the dealer to make input-tax credit claim. However, the period of 45 days has to be counted from the date of publication of the VAT Rules on June 21, 2005. Any other interpretation would defe....