M/S Sona Processors India Ltd vs C.T.O. Circlea- Bhilwara
2022 Latest Caselaw 9121 Raj

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Sales Tax Ref./rev. No. 47/2017

M/s. Sona Processors India Ltd. Sangam Tower Ghandi Nagar, Bhilwara Through Its Director Shri Nares, Resident Of 3 Main Sector Shastri Nagar Bhilwara, Rajasthn

----Petitioner Versus Commercial Taxes Officer, Circle A- Bhilwara.

                                                                  ----Respondent


For Petitioner(s)        :     Mr. Vikas Balia, Senior Advocate,
                               assisted by Mr. Priyansh Arora
For Respondent(s)        :     Mr. Sunil Bhandari



            HON'BLE MR. JUSTICE SANDEEP MEHTA
           HON'BLE MR. JUSTICE KULDEEP MATHUR

                                    Order

13/07/2022

The petitioner has approached this court through this

revision/reference for assailing the judgment dated 23.05.2017

passed by the Rajasthan Tax Board, Ajmer rejecting the appeal

filed by the petitioner against the order dated 20.12.2013 passed

by the Deputy Commissioner (Appeals), Commercial Taxes

Department, Bhilwara, who in turn affirmed the order dated

09.01.2013 passed by the Commercial Taxes Officer, Circle,

Bhilwara rejecting the application filed by the petitioner for refund

of Input Tax Credit (ITC) to the tune of Rs.49,00,862/-.

The revision was admitted on the following substantial

questions of law vide order dated 20.08.2018 :-

(2 of 4) [STR-47/2017]

(1) Whether in the facts and circumstances of the case, the

authorities below were justified in disallowing the Input Tax

Credit (Refund) to the petitioner company ?

(2) Whether the Tax Board was justified in distinguishing the

judgment in the case of A Infrastructure Ltd. Vs. Commercial

Taxes Officer, Special Circle, Bhilwara : RLW 2014 (2) 1813

as upheld by Hon'ble Supreme Court in Commercial Taxes

Officer Vs. A Infrastructure Ltd. : (2015) 15 SCC 98 ?"

Mr. Vikas Balia, learned Senior Advocate, assisted by

Mr. Priyansh Arora, representing the petitioner, drew the court's

attention to the order of the Deputy Commissioner (Appeals)

dated 20.12.2013 and pointed out that the appeal of the petitioner

was dismissed on the ratio of the order dated 23.11.2011 passed

by the Rajasthan Tax Board, Ajmer in the case of M/s. A

Infrastructure Ltd., Bhilwara Vs. Commercial taxes Officer, Special

Circle, Bhilwara and the petitioner was denied the relief of refund

of Input Tax Credit. He urges that the order dated 23.11.2011

passed by the Rajasthan Tax Board in the case of A Infrastructure

Ltd. was challenged in a bunch of revisions led by S.B. Civil (VAT)

Revision Petition No.7/2012. These revisions were accepted by

the learned Single Bench vide order dated 19.12.2013 and the

order of the learned Single Bench has been affirmed by the

Hon'ble Supreme Court vide judgment dated 24.11.2015 passed

in Commercial Taxes Officer Vs. A Infrastructure Ltd.[(2015) 15

SCC 98]. Mr. Balia, thus, urges that ex facie, the foundation of

the order passed by the appellate authority and the Tax Board has

been struck off and thus, the impugned orders deserve to be

(3 of 4) [STR-47/2017]

quashed and the respondents be directed to reimburse the claim

for Input Tax Credit made by the petitioner with interest.

Per contra, Mr. Sunil Bhandari, learned counsel

representing the respondent Department, vehemently and

fervently opposed the submissions advanced by the petitioner's

counsel. He urged that as the petitioner was dealing with

exempted goods, it is not entitled to claim Input Tax Credit. On

these submissions, he implored the court to dismiss the revision

and affirm the impugned orders.

We have given our thoughtful consideration to the

submissions advanced at bar and have gone through the material

available on record.

On a bare perusal of the order dated 20.12.2013

passed by the Deputy Commissioner (Appeals), it becomes clear

that the appeal of the petitioner herein was rejected on the

strength of the view taken by the Rajasthan Tax Board in the case

of "A Infrastructure Ltd." vide order dated 23.11.2011 and the

order of the appellate authority was affirmed by the Rajathan Tax

Board on the same ratio. The judgment dated 23.11.2011

rendered by the Tax Board in the case of A Infrastructure Ltd. was

reversed by the learned Single bench of this court vide order

dated 19.12.2013 referred to supra and the appeal preferred

thereagainst has been dismissed by the Hon'ble Supreme Court

vide judgment dated 24.11.2015. We are constrained to note

here that both these judgments were cited before the learned Tax

Board, but the same were ignored with impunity and the appeal

was rejected in gross disregard to the law laid down by the Apex

Court of the country. The approach of the Tax Board in this regard

is fit to be deprecated.

                                                                                (4 of 4)              [STR-47/2017]



                                               As   a   consequence,           the      impugned    order   dated

23.05.2017 passed by the Rajasthan Tax Board is quashed and set

aside. The appeal preferred by the petitioner shall be restored to

its original number and shall be heard and decided by a reasoned

order while considering the ratio of the judgments rendered by

this court and the Hon'ble Supreme Court in the case of A

Infrastructure Ltd. after providing opportunity of hearing to the

petitioner/its representative and Commercial Taxes Department.

The appeal shall be heard and decided within three months from

today.

The revision is allowed in these terms.

                                   (KULDEEP MATHUR),J                                      (SANDEEP MEHTA),J


                                    101-Pramod/-









Powered by TCPDF (www.tcpdf.org)