Case Law Details
Commissioner Vs Cribhko Shyam Fertilizer Ltd. (Allahabad High Court)
Introduction: In a recent ruling, the Allahabad High Court provided clarity on the application of Section 13(1)(f) of the Uttar Pradesh Value Added Tax Act, 2008. The case of Commissioner Vs. Cribhko Shyam Fertilizer Ltd. addressed the issue of tax paid exceeding input tax credit (ITC) claimed by the assessee.
Detailed Analysis: The case involved a registered trader engaged in manufacturing and selling urea fertilizer. The assessing officer had reversed the input tax credit (ITC) of the trader under Section 13(1)(f) of the UP VAT Act due to deficiencies found during an investigation. However, the first appellate authority accepted the trader’s appeal and cancelled the disputed amount. The revenue challenged this decision before the Tribunal.
The revenue’s argument centered on the contention that ITC benefits should only apply to goods purchased within the state of Uttar Pradesh and subjected to VAT. They cited relevant sections and rules, including Sections 13(1)(f) and 3(1)(f) of the Act and Rule 23(6) of the U.P. Value Added Tax Rules, 2008.
The Tribunal examined the provisions of the Act and noted that the trader had paid far more tax than the ITC claimed. Therefore, the rigors of Section 13(1)(f) were deemed inapplicable. The Tribunal upheld the order of the appellate authority, leading to the dismissal of the revenue’s appeal.
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