NATIONAL ENGINEERING INDUSTRIES LIMITED Vs. ASSISTANT COMMISSIONER, ANTI

JUDGEMENT

(1.) The present Sales Tax Revisions / References (for short "STRs"), filed under Sec. 84 of the Rajasthan Value Added Tax Act, 2003 (for short "RVAT Act"), were admitted on following questions of law:

(2.) As common issue is involved in all these STRs, with the consent of the parties, they were heard together and are now being decided by way of this common order. STR No. 13/2019 is taken as lead file to peruse the facts.

(3.) Brief facts leading to these STRs are that the petitionerassessee is a manufacturer of various types of bearings used for automotive, industrial and railway purposes. The Anti-Evasion Authorities surveyed the business premises of the appellant on 23/8/2016 and found that the appellant has purchased DEPB / Duty Free Licenses / Duty Credit Scrip within the State and has claimed and availed the ITC of the tax paid on purchase of these intangible goods. The enquiry officer found that no ITC is available on these items if the same are not disposed off in accordance with Sec. 18 of the RVAT Act. Accordingly, a case of tax-evasion was made out and it was transferred to the adjudicating/assessing officer (for short "AO"), who after affording an opportunity of hearing to the petitioner-assessee disallowed the input credit availed by them and levied interest on non-deposition of the due tax. The AO also held that the petitioner-assessee has availed wrong input tax credit and caused evasion of tax, and therefore imposed penalty under Sec. 61(2)(b) of the RVAT Act. Being aggrieved of the assessment order, the petitioner-assessee preferred appeals before the appellate authority, who vide order dtd. 16/8/2017 confirmed the reversal of ITC and levy of interest and penalty and rejected the appeals. Against the appellate orders, the petitioner-assessee preferred appeal under Sec. 83 of the RVAT Act before the Rajasthan Tax Board, who vide its order dtd. 13/9/2018, confirmed the reversal of ITC and levy of interest, but set aside the penalty.