Refund under VAT(Section 18,39,40,41 Form 29,30,30A 30B to 30D)

United nations and Constituent Agencies

Schedule G Organizations (United nations and its constituent agencies) are entitled to

§refund of tax paid for Goods purchased in the state

§On every single purchase

§From a taxable person or registered person

§Exceeding Rs. 5000

§Excluding Tax Amount

§On Application in Form 29A

§Certificate from head of the organization that goods are purchased for use in official functioning of organization to be furnished

§Note; Refund is allowable even if tax not paid

§Refund is allowable even for purchases from registered person

Taxation of New Pension Scheme

New pension scheme was intiated by PFDRA(Pension Fund Regulatory and development authority). NPS has been extended to all the citizens of India from 1-5-2009

New pension scheme is applicable to new entrants to government service or any other employer. As per the scheme, it is mandatory for persons entering service on or after January 1, 2004, to contribute 10 percent of salary every month towards notified pension account. A matching contribution is required to be made by the employer to said account. The tex treatment under the new scheme is as follow --

Penalty u/s 51 can not be levied for mere non reporting at ICC barrier

Mere statement of driver is not enough to impose penalty where transaction not reported at barrier but other wise goods are accompanied by genuine documents
Pandey Steel Industries (PVAT-Tri) 18 STM 353

No penalty u/s 51 for issue of vat invoice instead of retail invoice

PVAT 2005 does not provide any penalty for issuing vat invoice in place of retail invoice. Further if goods are loaded from one place although are shown to be purchased from some other place, it does not prove mens rea
Pooja Steel and Allied Indisutries (PVAT -TRI) 18 STM 251

Medical Equipment under warranty not reported at ICC

Held that since goods are highly sophisticated medical equipment for which payment made through a/c payee cheque and goods were duly recorded in books and under 2 year warranty. No penalty u/s 51 leviable
Medical Diagnostic P Ltd 18 STM 248(PVAT TRI)

Supply of food stuff by school is not Sale

If main activity is imparting education and not business, any incidental activity like supply of food stuff would not constitute business. Hence it will not be covered by "Sale"

Scholars Home Senior Secondary School 18 STM 328 (HC- Uttrakhand)

RC Charges not includible in Sale

Obligation to obtain RC is upon buyer. Facilitation of RC by seller is in nature of service rendered by Seller. Charges therefore recovered by seller can not form part of turnover of seller. RC charges therefore do not fall under " amount charged by seller in respect of goods at the time or before the delivery there of"
Sehgal Autoriders P Ld (Bom) 18 STM 285 

Hire Purchase or Installment Sale

§Sale Price shall be valuable consideration payable to a person for such delivery.

§The amount of interest shall be reduced as per Rule 15.

§Further as per ETC order dated 5.10.10, in case M/s. Aay Pee Industries, hire charges on shuttering material shall be taxable @ 12.5% because they are not declared goods. Taxable turnover shall be the amount of hire charges. Against C forms tax on hire charges shall be 2%

Sale by partnership Firm having same partners

§When one firm transfers goods to another firm and both the firms have identical partners, the transfer does not amount to sale (Moni parsad Singh 39 STC 131 CAL.)

§However if the shares of the partners are different, the transaction amounts to sale

   (Punjab Oil Mills 1992 PHT 377 Pb. Tri)

Sale price

As per section 2(zg) , sale price means :

•The amount of valuable consideration received or receivable by a

  person for any sale made

• including any sum charged on account of

a) freight

b) Storage       

c) demurrage

d) Insurance

e) Any sum charged for anything done by the person in respect

                of goods- At the time of  OR

                            - Before the delivery there for

ITC on gas cylinders

 ITC on Gas Cylinders is not admissible as packing material because Item no. 202 read with Entry no. 58 relating to packing material does not cover containers of iron and steel.
  Further since gas cylinders are not sold and are only provided on returnable basis, no ITC is admissible because for claiming ITC goods must be used for sale or in manufacturing, processing, packing of taxable goods for sale as per section 13.
 Further held that appellant company stands aggrieved because ITC denied to its consumers and is entitled to make application u/s 85.
(IOC PVAT TRI 2009 13STM 458

ITC on Used Transformer Oil

Used Transformer oil shall remain petroleum product
Bhakra Beas Management 2007 10 STM 109

ITC on Diesel

 As per order u/s.85 dtd. 12-04-2006 in case of Malwa Cotton Spinning Mills, ITC on diesel used in generation of electric power is not eligible for ITC.
 However, the above decision was challenged before PVAT tribunal. As per decision of PVAT tribunal rendered on 24-05-2006, 10 STM 219, diesel used in generation of electric power used in captive consumption for manufacturing taxable items held to be eligible for ITC
 Further , the rectification application made by department before tribunal has been rejected on 29-01-2009 on the ground that decision is correct and needs no rectification
 As per Supreme Court order in Rajasthan Texchem Ltd 10 STM 358, diesel used in running generator set for production of ultimate product can only be termed as raw material and not otherwise
 As per Allahabad High Court in Goel India, Moradabad, 11 STM 286 Diesel oil and other oils used for running generator sets would be entitled to be treated as part of manufacturing process.
 As per decision of Punjab and Haryana High Court delivered on 24.08.2010, ITC on diesel is not allowable, because specific provision over rules general provision.

ITC on promotional Items

No ITC allowable on promotional items like iron, wrist watches, T-shirts, Bags, which are offered as gift along sale of main product
L.G. Electronics 2006 STM 655 Del-VAT

ITC for person who has applied for TIN

Where a person has applied for R.C. and is granted R.C. w.e.f. date of his application shall be treated as registered person
A.V. Patiala Biscuits Manufacturing Pvt. Ltd.
1977 39 STC 381