Delhi HC Permits DVAT Return Rectification Pending SC’s Decision on Similar Cases

M/s Dreamcann Foods Private Limited Vs Commissioner of Delhi Value Added Tax, & Anr (Delhi High Court)

Delhi High Court has permitted M/s Dreamcann Foods Private Limited to rectify its Delhi Value Added Tax (DVAT) returns, a decision aimed at facilitating the issuance of forms necessary for inter-state goods transfers under Section 6A of the Central Sales Tax Act, 1956. This ruling, however, remains contingent on the final verdict of the Supreme Court in a series of similar cases.

The petitioner, Dreamcann Foods Pvt. Ltd., approached the High Court seeking directions for the issuance of requisite forms concerning inter-state trade and commerce for various assessment years. The case had previously been adjourned sine die in March 2021, awaiting the Supreme Court’s decision in a related matter, specifically Civil Appeal No. 004573/2017, titled ‘Commissioner Department of Trade and Taxes v. Ingram Micro India Pvt. Ltd.’ This appeal is challenging a Delhi High Court judgment in Ingram Micro India Pvt. Ltd. v. Commissioner Department of Trade and Taxes & Anr. (W.P. (C) 8272/2015).

During the recent hearing, both parties acknowledged the ongoing legal proceedings in the Supreme Court. The High Court’s decision drew heavily on a previous judgment by a co-ordinate bench in GSP Power System Pvt. Ltd. vs. Commissioner of Goods and Services Tax Department of Trade and Taxes & Anr. (W.P. (C) 7411/2020).