2012 (7) TMI 868

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....sider these appeals together. 2. There has been some delay in preferring these appeals. Accordingly, applications have been filed for condonation of delay in preferring these appeals. To one of those applications, an objection has been filed, which is formal in nature. We have considered the averments made in applications for condonation of delay as well as in the objection thereto. We are satisfied that sufficient grounds have been made out for delay in preferring these appeals. 3. Heard learned counsel for the parties. 4. There is no dispute that input-tax credit is available under the Uttaranchal Value Added Tax Act, 2005 only to such dealers, who have added value to items purchased by them, while effecting sale of such value ad....

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....;Certified that the dealer is entitled to exemption from tax at ........% as per Eligibility Certificate No............... . . . dated ........ according to which the exemption amount in this invoice comes to Rs......." 5. In view of alteration in section 76(6) (c) of the said Act, the Commissioner, Commercial Tax, Dehradun issued a circular dated April 17, 2008 indicating that in view of the amended provision of section 76(6)(c) of the Act, input-tax credit can only be availed of by the purchasing dealer, in the event, purchasing dealer actually paying tax to the seller. This circular led to refusal on the part of the Deputy Commissioner (Assessment), Commercial Tax to allow input-tax credits on the items purchased by the petitioners fr....

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....dealers. Therefore, section 76(6)(c) of the said Act, as stood before March 31, 2008, left a scope of creating confusion and, accordingly, the same required amendment. By reason of the amendment, input-tax credit is available to the purchasing dealer to the extent of the tax, he was liable to pay, but for the exemption granted to the dealer from whom he has purchased. 7. The learned Chief Standing Counsel submitted that by reason of the interpretation given there will be unjust enrichment on the part of the purchasing dealer. We think that before March 31, 2008, the purchasing dealer was getting something, which he was not entitled to otherwise in law. The fact remains that a purchasing dealer will only be entitled to input-tax credit wh....