Pre-deposit is Not Tax & Cannot be Retained or Adjusted Under DVAT Act

FEMC Pratibha Joint Venture Vs Commissioner of Trade And Taxes (Delhi High Court) Delhi High Court held that as per Section 38(3)(a)(ii) of the DVAT Act a pre-deposit does not partake the character of tax or duty, and hence Tax Department can neither retain the same nor could it utilize the same for adjustment purposes towards tax liability for different assessment years. Facts- The petitioner is a Joint Venture Group that had been engaged in the execution of work contracts for Delhi Metro Rail Corporation Ltd and discharged its VAT liability under the DVAT Act as well as the Central Act. The ...