Case Law Details
Chitra Hardware Vs Commissioner of VAT & ANR (Delhi High Court)
Introduction: In a notable verdict, the Delhi High Court dismissed an appeal by Chitra Hardware against the Commissioner of VAT & ANR, reinforcing the power of the Assessing Authority under the Delhi Value Added Tax (DVAT) Act to call for records and verify Input Tax Credit (ITC) claims.
Analysis: The case originated from the Assessing Authority’s refusal to refund Chitra Hardware’s ITC claim due to insufficient documentary evidence validating its genuineness. The Authority, in its assessment, argued that the appellant failed to produce necessary records including purchase invoices and bank statements. This rejection led to an appeal to the Appellate Tribunal for Delhi Value Added Tax, which was further dismissed, citing similar grounds.
This narrative persisted in the appellant’s subsequent appeal to the Delhi High Court, which sided with the Tribunal and the Assessing Authority. The court pointed out that the Assessing Authority is legitimately empowered to call for records and verify ITC claims.
The court dismissed allegations of malafide intentions, suggesting the appellant failed to specifically plead this with full particulars. This essentially positions the Assessing Authority’s duty and role as crucial and undeniable in maintaining the checks and balances of the tax system.
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