Vat case law if any required

This query is : Resolved

Chiranjeev Sharma (Querist)
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31 May 2012 Whether mistake in presentation in vat return can be a basis for imposition of tax.

suppose we have purchased following goods:-
1) Rs.1000/- goods which is taxable at first point by paying VAt on it.
2) Rs. 2000/- goods taxable at last point.

both are interchangeable and can not be separable from each other.

We have sold both goods at cost price + VAT ( since it is a controlled good and we can not charge tax)

Now our presentation was as follows in return:-

Total sales - Rs. 3000/-
VAT @ 10% - Rs. 300/- ( though we are not required to pay VAT on First point Taxable goods)

Less:Input VAT - Rs. 100/- ( though we are not eligible for input vat claim on first point taxable goods.

Net tax paid - Rs. 200/-

Now, the tax authorities are claiming Rs. 300/- as output Vat, but they are not accepting input VAT of Rs. 100/-. hence we may require to pay Rs. 100/- twice.

Is it Justified. Whether mistake in presentation in return can be a basis for imposing tax twice in a single sale.