Full News
High Court held sale price of vehivcles/cars could not be included in turnover
High Court held sale price of vehivcles/cars could not be included in turnover
Appellants were manufacturers/ traders of commodities, and were registered dealers under VAT. They purchased motor vehicles/cars and paid sales tax/VAT. Input tax credit was not availed/granted. VAT authorities added sale price of used vehicle in business turnover, and levied penalty and interest. Appellate Tribunal upheld the order. High Court held sale price could not be included in turnover and s 6(3) benefit was applicable.-900229
1. Appellants were manufacturers or traders dealing in other commodities, and were registered dealers under the Delhi VAT, 2004,
2. They purchased motor vehicles/cars and paid sales tax or VAT at the point of purchase.
3. Input tax credit was not availed/granted on the Sales Tax or VAT paid on the motor vehicles.
4. VAT authorities added sale price of the used vehicle in the business turnover, and levied penalty and interest.
5. Appellate Tribunal, VAT held that the sale of motor cars or other capital assets are not exempt u/s 6(3) oand upheld levy of penalty and interest.
On appeal, the High Court held as under:
6. In the cases of the appellants, if these conditions are satisfied then the sale price received by the appellant dealers on sale of used motor vehicles would not be included in the turnover for it would be exempt from tax under Section 6(3) of the DVAT Act.
7. Therefore, in view of the accepted and admitted facts, section 6(3) of DVAT Act would be applicable and the benefit cannot be denied.
Case Reference - ANAND DECORS & ORS V/S. COMMISSIONER OF TRADE AND TAXES.
IN THE HIGH COURT OF DELHI AT NEW DELHI ST. APPL. 35/2014
Reserved on: 18th December, 2014
Date of Decision: 23rd December, 2014
×
