Law: Sales Tax Act, 1990

Section: 8,8(1)(ca),73

(a) Sales Tax Act (VII of 1990)---Ss. 8(1)(ca) & 73---Tax credit not allowed---Adjustment of input tax was called in question and it was confronted that tax against the invoices was not deposited in treasury and that provisions of S.8(1)(ca) of the Sales Tax Act, 1990 were invoked---Registered person contended that material in question was imported and the tax was deposited at the import stage but could not produce the documents of import showing deposit of tax and contended that provisions of S.73 of the Sales Tax Act, 1990 were complied with and provided all the documents available to them from the suppliers as well as the documents recoverable from website etc.; and harsh provisions of S.8(1)(ca) could not be attracted; and Department should have prosecuted the suppliers for any default or non-payment of tax---Revenue contended that Registered Person could not substantiate its assertion that the tax was paid at import stage---Validity---Section 8 of the Sales Tax Act, 1990 starts with non-obstante subsection (1) and provide a list of eventualities upon which entitlement of the Registered Person to reclaim or deduct input tax was denied---Under Cl.(ca) of subsection (1) of S.8 of the Sales Tax Act, 1990 adjustment was denied simply for the reason that supplier had not deposited the tax in government treasury in respect of any invoice issued for goods or services---No exception held, could be drawn from a clear and unambiguous provision of S.8(1)(ca) of the Sales Tax Act, 1990, if the tax was not deposited in government treasury by respective suppliers. (b) Sales Tax Act (VII of 1990)--- ----S.8(1)(ca)---Tax credit not allowed---Non-payment of tax by the supplier---Non-confrontation of the Registered Person in form of evidence---Validity---Department was required to confront the Registered Person with cogent prima facie evidence to show that tax against the transaction/invoice in question was not deposited in national exchequer---Department could not be given a free hand to presume that the tax was not deposited and shift the onus on Registered Person---Prima facie evidence apparently was not confronted to the Registered Person and on the other hand,…

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