VIJAYA TRADING COMPANY Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) HEARD the counsel for the petitioner and the learned government pleader for the respondents.

(2.) PETITIONER is a dealer under the KVAT Act. They commenced their business with effect from 8-5-2006 and applied for registration under the KVAT Act on 28-12-2006. They were also granted registration with effect from that date. By Ext.P4, assessment for the year 2006-07 was completed, granting input tax credit only for the period subsequent to 28-12-2006. On that basis, demand notice was also issued for recovering the balance amount due from the petitioner.

(3.) A reading of the Section shows that notwithstanding the aforesaid provisions of the Act, dealers who had voluntarily applied for registration under the Act for the period from 15-12-2007 to 31-3-2008 would be entitled to claim input tax credit on their purchasers covered under bills/invoices of registered dealers within the State, from the date of commencement of their business. It is evident that this section applies only to dealers who were not registered under the Act and had voluntarily applied for registration during the period specified in the Section.