Whether assessee is entitled to avail Input Tax Credit on purchase of DEPB Scrips?

Nischal Agarwal

Whether assessee is entitled to avail Input Tax Credit on purchase of Duty Entitlement Pass Book (DEPB) Scrips?

The issue is no longer res integra as it has been decided by Hon’ble Delhi High Court in case of Jagriti Plastics Limited vs Commissioner of Trade & Taxes, [ST. Appl 5/2015], pronounced on 01^st October, 2015.

Facts of the case

The appellant purchased DEPB scrips from registered dealers on payment VAT under Delhi VAT Act in the course of their regular business activity. The appellant imported certain goods for re-sale using the DEPB scrips for payment of customs duty thereon. Such goods were sold and VAT was charged thereon. The output VAT liability was discharged by the appellant by utilization of Input Tax Credit availed on purchase of such scrips.

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