Mythree Associates Vs Commercial Tax Officer (Kerala High Court)
In a recent ruling, the Kerala High Court addressed the case of Mythree Associates Vs Commercial Tax Officer concerning the denial of input tax credit under the Kerala Value Added Tax Act, 2003 (KVAT Act). The petitioner, a registered dealer engaged in scrap material trade, purchased materials from the Travancore Devaswom Board during a specified period. Despite the Board collecting taxes and remitting them to the State Exchequer, the petitioner was denied credit because the Board was not registered under the KVAT Act. The court acknowledged the tax remittance by the Board and deemed the denial unjust, directing the Commissioner under the KVAT Act to ensure credit for taxes paid by the petitioner.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The petitioner is a registered dealer under the Kerala Value Added Tax Act, 2003 (hereinafter referred to as the ‘KVAT Act’). The business of the petitioner involves the purchase and sale of scrap materials. During the period from 20-09-2013 to 30-01-2014, the petitioner purchased certain scrap materials from the Travancore Devaswom Board. It is the case of the petitioner that the Board had sold these scrap materials after obtaining permission from this Court in DBA No.54/2012 and had also collected 5% as tax under the KVAT Act on the amounts remitted by the petitioner towards the auction amount. The petitioner’s claim is that since the Travancore Devaswom Board was not a registered dealer, the credit of the amounts paid by the petitioner as tax has not been given to him while completing the assessment for the year 2013-2014.
