Case Law Details
MFAR Constructions Pvt. Ltd. Vs Additional Commissioner of Commercial Taxes (Karnataka High Court)
Return is the basis on which the computation of tax liability has to be made including the input tax credit in terms of Section 10[3] and Section 10[4] of Karnataka Value Added Tax Act, 2003. It is not in dispute that no input tax credit has been claimed by the petitioners in any of the return filed during the relevant tax periods, merely on the audited statements filed by the Chartered Accountant/Cost Accountant/Tax Practitioner, no input tax credit can be allowed. If such an argument if accepted, filing of monthly returns would be an empty formality making the provisions of Section 35 to 56 as well as Section 72 of the Act redundant. The arguments of the learned counsel that the amendment brought to Section 10[3] with effect from 01.08.2008 substituting the words under the provisions of “the Act” for the words “Chapter V” implies to allow input tax credit on the basis of Form VAT 240 even in the absence of claim of input tax credit in the return filed by the assessee is wholly misconceived. By giving such an interpretation, the entire gamut of taxation mandating the strict adherence of filing returns, the foundation for assessment to determine the net tax liability gets uprooted, effacing Chapter V and the penal provision under Section 72 disturbing the scheme of the Act which is not the intent and object of the amendment brought to Section 10[3] of the Act with effect from 01.08.2008. In my considered opinion, the amendment would suggest strict compliance of all the provisions of the Act to claim the input tax credit. Section 10[3] cannot be read in isolation ignoring Section 10[4] read with Section 35. Any statement/certificate facilitating the assessment would not assume supremacy over the relevant substantial provisions. Such opinion of the Chartered Accountant/Cost Accountant/Tax Practitioner would only be a re-commendatory but cannot obliterate the mandatory provisions of filing of returns to compute the net tax liability under Section 10[3] and 10[4] of the Act.
It is apparent that all the registered dealers are not required to file such Form VAT 240 but only depending on the total turnover for the year, Form VAT 240 has to be filed. In cases where no such VAT 240 is filed, it would certainly result in discrimination if VAT 240 has to be accepted as the basis for determining the input tax credit. VAT Form 240 cannot replace the “return”.
At the cost of repetition, it is reiterated that none of the judgments referred to, by the learned counsel for the petitioners would permit the registered dealer to claim the input tax credit on the basis of the VAT Form 240 without filing the return. When the statutory provision mandates compliance in a particular manner, it should be done in that particular way alone not by any other method. “Expressio unius est exclusio alterius” is the well settled legal maxim followed by the Hon’ble Courts without any exception. Hence, this Court is of the considered view that no input tax credit can be availed independent of the claim in the returns merely filing Form VAT 240.
FULL TEXT OF THE HIGH COURT ORDER/JUDGEMENT
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