COMMERCIAL TAXES OFFICER versus A INFRASTRUCTURE LTD.

COMMERCIAL TAXES OFFICER versus A INFRASTRUCTURE LTD.

Input Tax Credit cannot be denied to a manufacturer/person merely because the sale by such manufacturer is exempted under Section 8(3) of the Rajasthan Value Added Tax Act, 2003. The term 'exempted goods' under Section 18(1)(e) refers only to goods fully exempt from tax, not to goods where only particular persons or...

Source-derived case information.

Parties
Appellant: Commercial Taxes Officer; Respondent: A Infrastructure Ltd.
Jurisdiction
India
Judgment Date
24 November 2015
Procedural Posture
Civil Appeal / Appeal to Supreme Court From the High Court of Rajasthan
Outcome
Appeals dismissed
Legal Topics
Input Tax Credit, Exemption Under Value Added Tax Act, Interpretation of Tax Statutes, Exempted Goods Vs. Exempted Person/transaction
Taxation Input Tax Credit Exemption Under Value Added Tax Act Interpretation of Tax Statutes Exempted Goods Vs. Exempted Person/transaction

Source-derived case record

Summary, issues, holding and outcome

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Parties

Commercial Taxes Officer

Appellant

A Infrastructure Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal to Supreme Court From the High Court of Rajasthan

Legal Issues

  1. 1 Whether exemption granted by notification under Section 8(3) of Rajasthan Value Added Tax Act, 2003 constitutes the goods manufactured by assessee as 'exempted goods' for denial of Input Tax Credit under Section 18
  2. 2 Proper interpretation of 'exempted goods' under Section 2(13) and its relation with exemption of a person or transaction
  3. 3 Whether the manufacturer/respondent is entitled to Input Tax Credit despite exemption notification

Ratio Decidendi

Input Tax Credit cannot be denied to a manufacturer/person merely because the sale by such manufacturer is exempted under Section 8(3) of the Rajasthan Value Added Tax Act, 2003. The term 'exempted goods' under Section 18(1)(e) refers only to goods fully exempt from tax, not to goods where only particular persons or transactions have been granted exemption. Therefore, the respondent was entitled to avail Input Tax Credit.

Court Disposition

Appeals dismissed

Orders

  • Respondent assessee entitled to avail Input Tax Credit; authorities below not justified in denying Input Tax Credit based on inclusion in Schedule-II under Section 8(3A) and notification S.O. 377 dated 09.03.2007