ITC Claims Can Be Rectified U/S 39 of VAT Act Despite Impact on State Exchequer: HC

State of Karnataka Vs Tractor And Farm Equipment Limited (Karnataka High Court) Karnataka High Court held that during re-assessment proceedings, claim for Input Tax Credit can be rectified under section 39 of the Karnataka Value Added Tax Act, 2003, even when the same is disadvantageous to the State Exchequer. Facts- State has preferred these Revision Petitions for assailing the Appellate Tribunal’s orders whereby, respondent-Assessee’s appeals having been favoured, he has been granted deduction of Input Tax Credit at the rate admissible in law although what was claimed in the Returns file...