2021 (7) TMI 225

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....tion and clarify the same and consequently set aside the impugned order dated 31.07.2007 in G.I.No.1640/2007-08 passed by the 2^nd respondent and consequently declare that the petitioner is entitled to claim the input tax credit. 2. The petitioner's case is thus: a) The petitioner who is a wholesale distributor of soft drinks and it is a registered turnover tax dealer (TOT) on the roles of 2nd respondent under A.P. VAT Act, 2005 vide GRNK DA/04/0/1640 w.e.f 01.04.2006. b) It filed an application Form VAT-100 on 18.05.2007 seeking registration as VAT dealer. The petitioner has been filing returns under turnover tax dealer from 01.04.2005 onwards. The petitioner filed returns reporting turnovers for 1st quarter ending 30.....

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....ler. The petitioner is liable to pay tax @ 1% only. After filing of quarterly returns for 30.06.2006 reporting turnover of Rs. 13,14,724/- by the petitioner, the 2nd respondent has not issued any notice directing the petitioner to apply for VAT registration as its turnover exceeded to Rs. 10 Lakhs and thus the 2nd respondent has not followed Rule 11 of A.P. VAT Act. Hence, the writ petition. 3) Heard Sri Kunuku Durga Prasad, learned counsel for the petitioner and learned Government Pleader for Commercial Taxes representing respondent No.2. 4) The main contention of the petitioner is that the provision in Section 17 (3) to the extent "Every dealer whose taxable turnover in the preceding three months exceeds Rs. 10 lakhs" is discrimi....

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.... (3) Every dealer whose taxable turnover in the preceding three months exceeds Rs. 10,00,000/- (Rupees ten lakhs only) or in the twelve preceding months exceeds Rs. 40,00,000/- (Rupees forty lakhs only) shall be liable to be registered as VAT dealer. Since the turnover of the petitioner for the 1st quarter ending 30.06.2006 was Rs. 13,14,724/- which exceeded Rs. 10 lakhs, the petitioner had an opportunity to apply for registration as VAT dealer. As per Rule (5) of A.P. VAT Act, the petitioner was required to make an application by the 15th of the month subsequent to the month in which the liability to register for VAT arose, meaning thereby, he should have applied before 15.07.2006 for VAT registration since the turnover f....