Seek citation for appeal under dvat act

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rk (Querist)
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09 September 2011 Rs.400000/- is debited to Discount on purchases.the amt has been debited to Trading A/c and had reduced from total purchases.But the supplier has not claimed any credit for the same i.e.had paid all the vat according to our gross purchases.He had also forwarded the undertaking for not reversing the tax into his returns. But ,the vato is unsatisfied & had determined the tax,interest & penalty thereon.
In fact,the dealer has received the credit note after every quarter. It is also confirmed by the supplier that he had forwarded the credit note on A/c of Turnover discount and paying off the amt of said purchases before time i.e.cash discount.BUT,ONE ANOTHER PROBLEM IS THAT THE DISCOUNT HAS BEEN REDUCED FROM THE PURCHASES IN OUR BALANCE SHEET WHICH HAS ALREADY BEEN SUBMITTED TO CONCERN AUTHORITY.PL.ADVICE ME CAN WE CHALLENGE HIS ORDER AND IF POSSIBLE PL.GUIDE ME THE SUITABLE CITATIONS.BOTH THE SALER & BUYER ARE REGD DEALER FROM DELHI.THX.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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11 September 2011 You should let us know what entry the supplier has passed without which it is not possible to give the opinion

rk (Querist)
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12 September 2011 Aggarwal ji,thx for responding.We have passed the entry as Dr...SELLER and Cr...Disc on purchases.No entry for vat has been passed AND simillarly the seller has passed the entry as Disc.on sales Dr and we are credited.This is also necessary that the seller has also issue the credit note after every qtr ,till then we have not shown the same into our ret.On clarification by our vato,the seller has also confirmed to our vato that he has not taken any tax benifit for such discount in his return.Basically the disc.was provided to us by the seller for turnover and cash disc for which we have owed the money from bank.Thx,waiting further....for your esteem opinion.....regards

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