ITC Claim not shown in VAT Return can’t be availed through merely Filing Form 240 – HC

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

The Extract of the Judgment are as follows :

Fact of the Case

• The petitioners are the dealers registered under the provisions of the Act.

• Based on the annual audit statement of accounts the assessee filed in Form VAT 240 notwithstanding no claim made in the return of turnover filed under Section 35 of the Act.

• The ITC claim of the petitioners based on Form VAT 240 has been rejected by the Authorities.

ITC Claim not shown in VAT Return can’t be availed through merely Filing Form 240 – HC

Decision of the Case

•  Justice S. Sujatha observed that all the registered dealers are not required to file such Form VAT 240 but only depending on the total turnover for the year, Form VAT 240 has to be filed.

• In cases where no such VAT 240 is filed, it would certainly result in discrimination if VAT 240 has to be accepted as the basis for determining the Input Tax Credit (ITC). VAT From 240 cannot replace the “return”.

•  While dismissing the writ petition Court also said that, When the statutory provision mandates compliance in a particular manner, it should be done in that particular way alone not by any other method.

• The Karnataka High Court has held that the Input Tax Credit ITC claim not shown in the VAT Return cannot be availed through merely filing Form 240.

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Tags : Judgement, High Court