TaxTMI 
TaxTMI 
2016 (10) TMI 374
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....f Haryana Value Added Tax Act, 2003 (for short, 'the Act'). It is engaged in the business of manufacture, sale and purchase of milk and milk products. For the assessment year in question, namely, 2005-06, the gross turnover of the appellant was Rs. 87,41,26,563/-. While framing the assessment vide order dated 30.1.2009, the Deputy Excise & Taxation Commissioner-cum-Assessing Authority, Karnal, rejected the input credit on purchases worth Rs. 29,86,837/-, as claimed by the appellant for purchase of machinery items, which were used in the process of manufacturing. The Assessing Authority was wrong in opining that the goods were in the nature of 'infrastructure goods'. Aggrieved against the rejection of input tax credit, the appellant preferred appeal to the Joint Excise & Taxation Commissioner (Appeals), Ambala, where the order passed by the Assessing Authority was upheld. Still aggrieved, the appellant preferred appeal before the Tribunal. The Tribunal while even noticing the kind of goods purchased, on which input tax credit was claimed, rejected the appeal. It is the aforesaid order, which has been challenged before this Court. 3. Learned counsel for the appella....
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....)(zl) of the Act defines 'input invoice'. It clearly mentions that the goods must be used for manufacturing or processing of goods for sale. Section 8 of the Act and Schedule-'E' are not to be read in isolation, rather these are to be read together with Sections 2(1)(w) and 2(1)(zl) of the Act. Some of the goods in question were used by the appellant for construction of building, hence, input tax credit has rightly been declined by the authorities. The earlier order passed by the Tribunal in the case of Amir Chand Jagdish Kumar, Gharaunda, Karnal's case (supra) is distinguishable as in that case the tax was paid on purchase of machinery and its parts, which were used for manufacture of rice. 6. In response, learned counsel for the appellant submitted that even if the goods purchased by the appellant fall in the category of capital goods, still if Schedule-'E' is read, the appellant will be entitled to input tax credit on their purchase as none of the circumstance exists on account of which the input tax credit shall be 'nil'. 'Capital goods' have been defined in Section 2(1)(g) of the Act. 7. Heard learned counsel for the parties an....
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....sub-section (3), be sufficient proof of the tax paid on such goods for the purpose of subsection (1). (3) Where any claim of input tax in respect of any goods sold to a dealer is called into question in any proceeding under this Act, the authority conducting such proceeding may require such dealer to produce before it in addition to the tax invoice issued to him by the selling dealer in respect of the sale of the goods, a certificate furnished to him in the prescribed form and manner by the selling dealer; and such authority shall allow the claim only if it is satisfied after making such inquiry as it may deem necessary that the particulars contained in the certificate produced before it are true and correct. (4) The State Government may, from time to time, frame rules consistent with the provisions of this Act for computation of input tax and when such rules are framed, no input tax shall be computed except in accordance with such rules. xxx xxxx xx SCHEDULE - E (Refer sub-section (1) of section 8) Sr. No. Description of goods Circumstances in which input tax shall be nil 1 2 3 1 Petroleum products and natural gas (i) Whe....
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....e State in manufacture or processing of goods for sale. 'Input Tax' has been defined in Section 2(1)(w) of the Act to mean the amount of tax paid to the State in respect of goods sold to a VAT dealer, which such dealer is allowed to take credit of as payment of tax by him, calculated in accordance with the provisions of Section 8 of the Act. "Tax Invoice" has been defined in Section 2 (1)(zl) of the Act to mean an invoice required to be issued as per Section 28 (2) of the Act for sale of taxable goods by a dealer to another dealer for resale by him or for use by him in manufacture or processing of goods for sale, and which entitles him to claim input tax as per provisions of Section 8 of the Act. Section 8(1) of the Act provides that input tax in respect of any good purchased by a VAT dealer shall be the amount of tax paid to the State on the sale of such good to him but shall not include tax paid in respect of goods specified in Schedule 'E' used or disposed of in the circumstances mentioned against such goods. Schedule-'E' at the relevant time provided for three different categories of goods wherein in the circumstances mentioned in column 3 thereof the in....