VAT input credit can be taken on purchases of DEPB licences

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Tuesday, October 6, 2015

Dear All,

We are in receipt of the copy of the judgement passed by Hon'ble Delhi High Court in the matter of M/s. Jagriti Plastic Limited and M/s.N.F. Impex Pvt. Ltd Vs Commissioner of Trade and Taxes. The scanned of the judgement is attached herewith.

The said judgement is forwarded by one of our member and Senior Chartered Accountant Shri K C Singhal to SIMA to enable SIMA to share the judgement with other industries colleagues for their information and interest.

In the said judgement Hon'ble Lordship has held that, as long as it is shown that use of the DEPB scrip has impacted the cost of the product that is sold, either directly or indirectly, the credit of the input tax paid on the DEPB scrip cannot be denied to the Assessees.

So you are requested to go through the judgement in detail.

This is for the information and in larger interest of the industries colleagues.

Thank to Shri K.C. Singhal for sharing the information.

Thanking you,

With regards,

For Silvassa Industries & Manufacturers Association

Narendra Trivedi

Secretary

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