TaxTMI 
TaxTMI 
TaxTMI 
2024 (8) TMI 198
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....04.2016 in an appeal preferred by it which was dismissed affirming the order dated 08.06.2015 of the Gujarat Value Added Tax Tribunal Ahmedabad (hereinafter referred to as 'the Tribunal'), allowing the appeal of Respondent M/s Ambuja Cement, Ltd. 2. The plea taken by the Appellant while challenging the judgments of the High Court and the Tribunal is that the Courts below have erred in holding that Value Added Tax and value of purchases on which no tax credit was claimed nor granted in the assessment, cannot be included in the aggregate of taxable turnover of purchases within the State for the purpose of reduction of tax credit under Section 11(3)(b) of the Gujarat Value Added Tax Act, 2003 (hereinafter referred to as 'the GVAT Act'). 3. Two substantial questions of law being framed by the High Court were as follows : - [1] Whether the Hon'ble Tribunal has erred in law and in facts in holding that value added tax paid on purchases is required to be excluded for computing "taxable turnover of purchases" under section 11(3)(b) of the Act? [2] Whether the Hon'ble Tribunal has erred in law and in facts by holding that purchases on which value added tax is neither claimed ....
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.... in the purchase price, the same could have been expressly provided for in the statute. 7. It is further contended by the learned counsel that the scope of Section (11)(3)(b) of the GVAT Act while computing the taxable turnover of purchases cannot be expanded beyond the provision as provided for under the GVAT Act, supporting the said judgment, therefore, it was prayed for the dismissal of the present appeals. 8. We have considered the submissions made by the learned counsel for the parties and have gone through the provisions, as well as the pleadings. 9. In brief, the facts of the case are that the Respondent dealer as mentioned calculated the taxable turnover of its purchases within the State of Gujarat by excluding the amount representing Value Added Tax and value of purchases of which no credit was claimed. This was asserted to have been done under the provisions of Section 11(3)(b) of the GVAT Act. Accordingly, the taxable turnover was calculated and proportionately reduced by four per cent on the quantity of goods involved in the manufacturing of goods dispatched by way of branch transfer. 10. The Deputy Commissioner during the process of audit assessment determined the ....
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.... a person for the execution of such works contract, the amount representing labour charges for such execution, (c) in relation to the delivery of goods on hire purchase or any system of payment by installments, the amount of valuable consideration payable by a person for such delivery. 12. On going through the above definition as has been provided for, it would indicate that the same is not only exclusive but exhaustive as well, it can rather be said to be enumerative. The first and foremost duty of the Court is to read the statute as it is and if the words therein are clear and unambiguous then only one meaning can be inferred. The Courts are bound to give effect to the said meaning irrespective of the consequences so far as the taxation statutes are concerned. Article 265 of the Constitution of India, 1950 prohibits the State from extracting tax from the citizens without the authority of law. The tax statutes have to be interpreted strictly which means that the legislature mandates taxing certain persons in certain circumstances which cannot be expanded or interpreted to include those who were not intended or comprehended. The assessee is not to be taxed without clear words ....
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....d to be exhaustive and not extensive and would cover only the educational institutions falling in the categories specified in Rule 2(b) and other educational institutions are not comprehended. Insofar as engineering colleges are concerned, their exclusion may be for the reason that the opening and running of the private engineering colleges are controlled through the Board of Technical Education and Training and the Director of Technical Education in accordance with the directions issued by the AICTE from time to time." 15. In the light of the above reproduced definition as provided for under Section 2(18) of the GVAT Act, it becomes obvious that the definition is enumerative and exhaustive. The use of the word "means" denote the intention of the legislature to restrict the scope of the "purchase price" to the categories enumerated in the definition itself. The purchase price, therefore, would be the amount of valuable consideration paid or payable for any purchase which would include amount of duties, levied or leviable under the two acts as has been provided for in this Section apart from the other charges as expounded therein. The scope has been limited to the two Acts mention....