Tax Mohalla - Tax by KK

History of vat Concept of VAT was referred and proposed by Dr. Wilhelm Von Siemens in Germany in 1919.   In 1921 the same type of concept was also suggested by Professor Thomas S. Adams in USA . In 1949 VAT was recommended in JAPAN. The discussion on VAT was started in Germany (1919), USA (1921) and Japan (1949) and the overall world came to know something about VAT from these three initial discussions and references. VAT was first introduced in France in 1954. See the discussions were started from Germany, USA and Japan but France took the lead and introduced VAT in 1954 and till 1960 remain the only country in the world to have the VAT in their taxation system. Ivory Coast was the second country to introduce VAT in 1960 followed by Senegal in 1961 and Denmark in 1967.

The benefit of ITC / CCR / exemption is available only assesee satisfies the eligibility criteria and for that purpose the provision must be strictly construed. If exemption is available on complying with certain conditions, the conditions have to be mandatorily complied with.  In (2011) [Commissioner of Central Excise v. Hari Chand Gopal], the Hon’ble Supreme Court held as under:-