The All India Computer Traders' Association (ADCTA) had accused Quick Heal Technologies with violation of the VAT law in Himachal Pradesh (HP), but the company now got a clean chit from the Additional Commissioner Excise and Taxation-cum-Appellate Authority, Shimla.
The company had appealed against the VAT law and as per the order against Appeal No. 176/2012-2013 u/s 45 of the Himachal Pradesh Value Added Tax Act, 2005, there is no liability due under the Himachal Pradesh VAT Act. As such, the appeal of Quick Heal was accepted and the orders of the Assessing Authority have been set aside.
The Assessing Authority had raised a demand of Rs.23 crore in 2012 for violation of the VAT law. It was alleged that Quick Heal had evaded tax in the form of VAT.
As per HP VAT Act, the liability to pay tax has been cast on the seller – and not the buyer.
In the instant case, the seller (job workers) have discharged liability to pay VAT as per provisions of the HP VAT Act and Quick Heal being the buyer has no liability to pay VAT and that too on the sale price arrived at that after inclusion of notional value. As such the appeal of the Appellant is allowed accordingly and the orders of Assessing Authority are set aside.
