Input tax credit eligibility is tied strictly to the tax period related to the purchase invoices, not dependent on reimbursement timings.

JUDGMENT

Rajiv Shakdher, J.: (ORAL)

CM APPL. 50118/2022

1. Allowed, subject to just exceptions.

VAT APPEAL 38/2022

2. This appeal is directed against the order dated 07.09.2022 passed by the Delhi Value Added Tax Appellate Tribunal [hereinafter referred to as "Tribunal"].

3. Mr Ashok K. Bhardwaj, who appears on behalf of the appellant, says that the only question of law which the appellant would want this court to consider is the following:

"Whether the provisions of the DVAT Act, 2004 provide for a claim of Input Tax Credit only for the tax period to which such purchases pertain based on the date indicated on the tax invoices."

4. Admit.

5. The aforesaid question of law was considered and arguments were advanced by the counsels for the parties qua the same.

6. Briefly, the facts which are necessary to be considered while rendering a decision qua the aforesaid question of law are the following:

6.1. The appellant received materials for execution of a works contract. The details of the invoices along with the tax period and the value added tax (VAT) paid by the vendor i.e., Sacred Constructions Pvt. Ltd. are set forth hereinafter:

6.2. The record shows that each of the tax invoices referred to above indicate the component of the VAT included therein along with the price of the material furnished by the aforementioned vender. These tax invoices are part of the record.

6.3. It is also not disputed by the appellant that while the price of the material supplied by the vendor was paid, what was withheld by the appellant was the tax component.

6.4. Mr Bhardwaj in support of this plea has referred to the communication dated 02.04.2007, addressed by the vendor to the appellant. For the sake of convenience, the said communication, being brief, is extracted hereinafter:

"We are executing the above said work, and as per the conditions, the payment of VAT shall be reimbursed to us by ABB Ltd. Please find enclosed herewith the detail of the payment of VAT to be reimbursed for R/A-01, R/A-02 & R/A-03 amounting to Rs. 15,44,081.00 (Rupees Fifteen Lacs Forty Four Thousand Eighty One Only) duly certified by our Chartered Accountant. The copy of the Returned file, the Challans of payment of VAT & the Tax Invoice are enclosed herewith.

It is requested that the payment of VAT upto IIIrd Quarter i.e., 31.12.2006 amounting to Rs. 15,44,081.00 (Rupees Fifteen Lacs Forty Four Thousand Eighty One Only) shall be paid to us.

Kindly release the payment of VAT at the earliest & oblige."

7. Furthermore, Mr Bhardwaj has also relied upon the certificate issued by the Chartered Accountant dated 29.03.2007, to which reference is made in the above-extracted communication dated 02.04.2007 addressed by the vendor to the appellant. The certificate facially indicates that the VAT for each of the three invoices in issue has been paid.

8. Mr Bhardwaj says that a harmonious reading of the provisions of Delhi Value Added Tax Act 2004 [in short, "2004 Act"] and Delhi Value Added Tax Rules 2005 [in short, "2005 Rules"] would show that the tax period vis-a-vis which credit could be taken, is not dependent upon the date when the invoice was issued.

8.1. For this purpose, Mr Bhardwaj has referred to Sections 9(3) and 12(4) of the 2004 Act and Rule 4(c) of the 2005 Rules.

9. Mr Rajiv Aggarwal, who appears on behalf of the respondents/revenue, contends to the contrary.

10. Having heard the learned counsel for the parties, it is relevant, at this jun