2018 (9) TMI 2

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.... K. Vinod Chandran, J. The three questions, which arise from the order of the Tribunal, are as follows: (i) Whether the estimation done on the basis of the value shown in the Delivery Note is correct, especially when the Delivery Note discloses the value as stipulated by the Commissioner for payment of advance tax? (ii) Whether the Tribunal was justified in sustaining the estimation on the lo....

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....ee had in fact sold the purchased goods at a price lower than that seen from the Delivery Notes. It is submitted that as per the Circular of the Commissioner it is mandated that Delivery Notes show the sale value of goods for the purpose of payment of advance tax. Even if the said contention is accepted, the assessee was obliged to produce the invoices showing the sales having been carried out at ....

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....elivery Notes and the interstate purchases conceded in the return. Though a explanation was put forth for reason of there being no substantiating evidence, we have declined deletion of addition with respect to interstate purchases; despite which it is to be noticed that the explanation was a plausible one. We find that there being no evidence to indicate a suppression of local purchases, the addit....

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....e said contention, since the claim made is of an input tax credit. As rightly found by the First Appellate Authority as also the Tribunal, input tax credit is a concession permitted to avoid the cascading effect in a value added tax regime. What is paid as tax at an earlier instance has to be set off in the later instance, wherein the taxation is only on the value addition. While avoiding the casc....