Case Law Details
The Hon’ble Punjab & Haryana High Court in a crucial decision has held that input tax credit cannot be disallowed merely for a technical defect in the VAT Invoice such as non mentioning of words “Input Tax Credit is available to a person against this copy” as per Rule 54 of the Punjab VAT Rules, 2005.
The Court in nut shell laid down the principle that even in the absence of a statutory form provided for claiming any benefit, such as modvat credit or input tax credit, a dealer can still claim the same in case he is able to prove that the transaction was genuine and the tax had been paid to the selling dealer.
The Court while accepting the appeal against the Tribunal’s order further held that the Tribunal was not justified in rejecting the claim of input tax credit merely on technicalities, when the dealer was able to show that the tax had been paid to the selling dealer and duly deposited with the State.
The court also further held that the provisions of Rule 54 of the Rules are not mandatory, in case the claimant/dealer is able to prove from other evidence that the transaction and the claim is genuine.
The relevant extract from the judgement is as under:
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