Delhi HC allows DVAT Returns Rectification To Enable Requisite Form of Inter-State Goods Transfer Subject to Supreme Court Verdict [Read Order]

In a recent order, the Delhi High Court has allowed the rectification of its Delhi Value Added Tax ( DVAT ) returns for multiple quarters across the financial years 2014-15 to 2016-17. However, the implementation of this direction has been made contingent upon the outcome of certain appeals currently pending before the Supreme Court.

The matter was heard by a Division Bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta, noted that the present dispute bore striking similarity to the issues raised in the case of ‘Commissioner Department of Trade and Taxes v.Ingram Micro India Pvt. Ltd.’, which is currently pending in Civil Appeal before the apex court.

In that case, the Supreme Court has already granted leave, and similar interim orders were passed by this High Court in a range of matters, including GSP Power System Pvt. Ltd. v. Commissioner of GST.

Also read: Delhi HC Allows Rectification of  DVAT Returns to enable Issuance of Requisite ‘F’ Form in respect of Goods Transferred under Interstate Trade and Commerce[Read Order]

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MIS Dreamcann Foods, the petitioner had approached the High Court under Article 226 of the Constitution, seeking issuance of statutory forms for inter-state stock transfers under Section 6A of the Central Sales Tax Act, 1956. The company's inability to reflect these transfers properly in the returns had led to the denial of ‘F’ forms by the Department, which are necessary to validate stock transfers and avoid tax liability.

The Court, noting the previous rulings in similar matters, permitted the petitioner to rectify its returns for the second and third quarters of AY 2014-15, first quarter of AY 2015-16, and second, third, and fourth quarters of AY 2016-17.

However, it clarified that the said rectification and any consequential issuance of forms shall remain in abeyance until the Supreme Court pronounces its verdict in the Ingram Micro and Indian Oil Corporation matters, which deal with the broader question of revising returns to claim statutory forms.

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The Court observed that no useful purpose would be served by prolonging the matter, and accordingly disposed of the petition while keeping its directions subject to the final outcome of the pending appeals before the Supreme Court.

Also read: Delhi HC dismisses Application of “Transfer of Right to Use” of Goods under Central Sales and DVAT Act w/o Transfer of Effective Control and Possession [Read Order]

To Read the full text of the Order CLICK HERE

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