DEEPAK ROSHAN,J. - (1.) Heard learned counsel for the petitioner and learned counsel for the State.
(2.) The petitioner deals in purchase and sale of Yamaha make motorcycles and spare parts within the State of Jharkhand, for which, the petitioner was liable for payment of Jharkhand Value Added Tax, which came in force in the State on 01 st April, 2006. Prior to coming into force of Jharkhand Value Added Tax Act, (herein after referred to as the 'JVAT Act'), admittedly, the petitioner was subject to tax liability under the Bihar Finance Act, 1981. Upon coming into force of JVAT Act, Section 20 of the JVAT Act provided as follows :- "20. Input Tax Credit on the Closing Stock of Registered Dealers prior to Appointed date. - Full input tax credit shall be allowed in the manner prescribed for goods purchased on and after 1.4.2005 and which have borne the incidence of tax under the provisions of adopted Bihar Finance Act, 1981 Part I, and held as closing stock on the Appointed Day and are sold or re-sold thereafter against the current VAT liability, or consume such goods in the manufacture of taxable goods which are sold W.P. (T) (D.B.) No. 3217 of 2012 against the current VAT liability and or consume such goods for direct use in mining."
(3.) Rules were also framed by the State of Jharkhand, being Jharkhand Value Added Tax Rules, 2006, (herein after referred to as the 'JVAT Rules'), Rule 26 (1) (b) and (f) which, reads as follows :- "26. Computation of Input Tax Credit.- (1) Input tax credit on the opening stock of the tax paid goods purchased between 1.4.2005 and Appointed Day- After the commencement of the Act, where any dealer registered as a VAT dealer or where the authority prescribed registers any dealer as a VAT dealer under Rule 3, such dealer shall be eligible for Input Tax Credit as provided under Section 20 of the Act. The goods on which the input tax credit is claimed and allowed shall be available as on the Appointed Day, on stock of tax paid goods excluding the goods mentioned in Part-E of Schedule-II of the Act and shall be admissible within nine months from the appointed date on the following conditions- (a) ----------------. (b) The VAT dealer claiming input tax credit, shall make an inventory of all goods in hand, on the Appointed Day, which has suffered the incidence of tax under the Repealed Act, and shall file his claim for Input Tax Credit in Form JVAT 401 along with the evidences, including the statement of purchase or sale invoice(s) or copies of the Declaration(s) in form IX-C issued /received under the Repealed Act. (c) ----------------. (d) ----------------. (e) ----------------. (f) The claim for such input tax credit shall be filed before the prescribed authority, within a period of thirty days from the date of commencement of the Act. The claim of such input tax credit shall be verified and allowed in Form JVAT 402, not later than a period of eight months, from the date of receipt of Form JVAT 401. *** *** ***." ;