2. This is yet another instance of the Department of Trade & Taxes
(„DT&T), Government of NCT of Delhi acting in blatant violation of the
statutory provisions of the Delhi Value Added Tax Act, 2004 („DVAT Act‟)
and the decisions of the Courts.
3. The background facts are that the Petitioner is engaged in the sale and
purchase of mobile phones of brands like Samsung, Apple, HTC etc. The
Petitioner, a registered dealer under the DVAT Act, states that it has been
paying taxes at the time of purchase of the phones and claims the tax paid as
input tax credit in terms of Section 9(1) of the DVAT Act.
4. It is stated that in the first three quarters of 2013-14 in the return filed by
the Petitioner, the excess tax credit, which stood accrued was carried
forward to the next tax period in terms of Section 11 (2) (b) of the DVAT
Act. After the amendment to Section 11(2) of the DVAT Act with effect
from 12th September 2013, the credit earned for the fourth quarter of 2013-
14 could not be carried forward to the next tax period. Therefore, in the
return filed for the fourth quarter of 2013-14 on 25th April 2014 a refund of
Rs. 68,83,331/- was claimed, which on a revised return filed by the
Petitioner got reduced to Rs. 53,81,316/-.
Source: Indian Kanoon