May 2014
M/S.Shree Shyam Enterprises vs. Joint Commissioner, Sales Tax, Bally Circle And Others, [2012] 49 VST 177 (WBTT)
By C. B. Thakar Advocate; G. G. Goyal, Janak Vaghani Chartered Accountants
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Value Added Tax – Input Tax Credit – Tax Invoice Purchase of Goods Under Auction – Sale Release Order Issued By Vendor Containing Prescribed Particulars – Disallowance of Claim For Want of Tax Invoice – Not Correct, Section 21 of The West Bengal Value Added Tax Act, 2003 and R. 91 (7) Of The West Bengal Value Added Tax Rules, 2005
FACTS
The assessee dealer purchased goods from M/s. South Eastern Railway on auction after paying due tax to it. The vendor issued sale release order containing particulars, i.e., date of sale, sale order number and date, name and address of selling dealer, full description of goods sold, quantity or number of goods sold, value of the goods sold, rate and amount of tax charged. The dealer claimed input tax credit in returns. The department rejected the claim for want of proper tax invoice and did not consider the sale release order as tax invoice. The dealer filed application u/s. 8 of The West Bengal Taxation Tribunal Act, 1987 against the rejection of claim of input tax credit.
HELD
The vendor issued sale release order containing all the particulars required under sub-Rule (7) of Rule 91. The documents having contained all the particulars, as required in sub-rule (7) of rule 91 of the VAT Rules, 2005, the Sale Release Order ought to have been equated with and treated at par with the Tax Invoice. The appeal was allowed and assessing authority was directed to allow the claim on verification of documents, treating the sale release order as tax invoice.
