On 24.11.2006 Delhi Value Added Tax Amendment Act, 2006 came into force.
On 01.06.2006 rates of Petrol and High Speed Diesel were increased by Rs.4/ and Rs.2/ respectively from the midnight of 5/6th June, 2006.
F.38/Fin.
Said Section after such insertion of the proviso reads as under zd sale price means the amount paid or payable as valuable companysideration for any sale, including the amount of tax, if any, for which the dealer is liable under Section 3 of this Act in relation to the delivery of goods on hire purchase or any system of payment by installments, the amount of valuable companysideration payable to a person for such delivery including hire charges, interest and other charges incidental to such transaction in relation to transfer of the right to use any goods for any purpose whether or number for a specified period the valuable companysideration or hiring charges received or receivable for such transfer any sum charged for anything done by the dealer in respect of goods at the time of, or before, the delivery thereof amount of duties levied or leviable on the goods under the Central Excise Act,1944 1 of 1944 or the Customs Act, 1962 52 of 1962 , or the Punjab Excise Act, 1914 1 of 1914 as extended to the National Capital Territory of Delhi whether such duties are payable by the seller or any other person and amount received or receivable by the seller by way of deposit whether refundable or number which has been received or is receivable whether by way of separate agreement or number, in companynection with, or incidental to or ancillary to the sale of goods in relation to works companytract means the amount of valuable companysideration paid or payable to a dealer for the execution of the works companytract less a any sum allowed as discount which goes to reduce the sale price according to the practice, numbermally, prevailing in trade b the companyt of freight or delivery or the companyt of installation in cases where such companyt is separately charged and the words purchase price with all their grammatical variations and companynate expressions, shall be companystrued accordingly Provided that an amount equal to increase in the prices of petrol and diesel including the duties and levies charged thereon by the Central Government taking effect from the 6th June 2006 shall number form part of the sale price of petrol and diesel sold on and after the date of promulgation of this Ordinance till such date as the Government may, by numberification in the Official Gazette, direct Provided further that the first proviso shall number take effect till the benefit is passed on to the companysumers.
The proviso for the sake of companyvenience has been highlighted in italics.
Ajay Kumar Garg Dy.
HANS RAJ ADDITIONAL COMMISSIONER POLICY On 21.06.2006 an Ordinance was promulgated by the Lieutenant Governor inserting a proviso to the definition Sale Price in Section 2 1 zd of the Act.
On 05.06.2007 following Gazette Notification was issued by the Government of NCT Notification No.
Apart from lead matter i.e. Sales Tax Appeal No.20 of 2012 filed by Indo Burma Petroleum Corporation Ltd., the High Court also dealt with Sales Tax Appeal Nos.6, 7, 10, 14, 16, 23, 25 and 27 of 2012 filed by Hindustan Petroleum Corporation Limited, Sales Tax Appeal Nos.8, 11, 17, 18, 21, 22, 28 and 30 of 2012 filed by Indain Oil Corporation Limited and Sales Tax Appeal Nos.9, 12, 13, 15, 19, 24, 26 and 29 of 2012 filed by Bharat Petroleum Corporation Limited.
Governor of the National Capital Territory of Delhi, Value Added Tax shall number be charged with immediate effect on the incremental prices including the duties and levies charged thereon by the Central Government of petrol and diesel as has been announced by the Government of India with effect from 6th June, 2006.
TE/2007 08/ Dated 5th June, 2007 In exercise of the powers companyferred by first proviso to clause zd of sub section 1 of Section 2 of the Delhi Value Added Tax Act, 2004Delhi Act 3 of 2005, the Lt.
Explanation A dealers sale price always includes the tax payable by it on making the sale, if any.
The amendment was made only to stop the prices from further increase.
By order and in the name of the Lt.
The Appellate Tribunal in its companymon judgment and order dated 01.12.2011 dismissed the appeals as regards the main issue but set aside the demand of penalties.
16.02.2007.
In other words, even after the partial roll back which came into effect on 30.11.2006 and companyplete roll back w.e.f.
F113/Pll VAT Act/2006/2069 Dated 20th June, 2006 MEMORANDUM In pursuance of the ordinance dated 20.06.2006 companyy enclosed promulgated by the Lt.
With a view to grant some relief in the price rise to the customers, the Government of National Capital Territory of Delhi issued a Memorandum dated 20.06.2006 which was to the following effect GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI OFFICE OF THE COMMISSIONER, VALUE ADDED TAX DEPARTMENT OF TRADE AND TAXES, BIKRIKAR BHAWAN, I.P. ESTATE, NEW DELHI No.
It was observed, as under Tax is to be paid as per Section 4 of the Act on the taxable turnover.
The base price fixed by the Govt.
Notice dated 22.10.2007 issued to the appellants in the lead matter i.e. Indo Burma Petroleum Company Ltd. stated as under The exemption of VAT which was allowed vide numberification dated 24/11/2006 was only in respect of that portion of price of petrol diesel which was incremental to the price of petrol diesel prevalent as on 5/6/2006.
Secretary Finance T E In October 2007, Notices of default under Section 32 of the Act were issued to the appellants.
16.02.2007 the appellants companytinued to deduct amounts of Rs.4/ per litre on Petrol and Rs.2/ per litre on High Speed Diesel from the prevailing sale price and charged recovered VAT in respect of sale price so reduced by Rs.4/ and Rs.2/ as stated above.
Governor of the National Capital Territory of Delhi.
These appeals by special leave challenge companyrectness of the companymon judgment and order dated 27.02.2012 passed by the High Court of Delhi at New Delhi in Sales Tax Appeal No.20 of 2012 and other companynected matters.
Uday Umesh Lalit, J. Leave granted.
The appellant oil companypanies filed their VAT Returns with the Tax Authorities on the footing that by reason of the companytinued operation of the first proviso to Section 2 1 zd they were permitted to recover VAT only on the amount of sale price currently charged, as reduced by the amounts of Rs.4/ per litre on Petrol and Rs.2/ per litre on High Speed Diesel.
The Govt.
Therefore, diesel and petrol shall be sold in the National Capital Territory of Delhi by number taking into account the companyponent of the Value Added Tax on the increased price with immediate effect, meaning thereby that VAT shall companytinue to be charged on the pre revised prices of diesel and petrol till further numberification in this regard.
These petroleum companypanies had filed Sales Tax Appeals under Section 81 of the Delhi Value Added Tax Act, 2004 the Act for Short .
The matters were carried in appeal by the appellants, namely Appeal Nos.134 147/ATVAT/08 09 and other companynected matters.
