D.E.P.B., (Duty Entitlement Pass Book) Its Taxability – Issues Therein

By Sanjeev Malhotra, F.C.A, F.C.S, A.I.C.W.A.

The case of Sadhu Overseas, Faridabad Vs State of Haryana decided by Haryana Tax Tribunal on 21.10.03 has held DEPB as equal to money and thus not goods taxable under HGST Act, 1973. DEPB was earlier decided as taxable goods liable to tax by Delhi High Court. Whether DEPB is eligible goods under Central Sales Tax Act, 1956 for charging of lower rate of tax? Whether form C under CST Act can be issued for purchase of DEPB? Whether Tax invoice can be issued by seller of DEPB in the State of Haryana under Haryana Value Added Tax Act, 2003? And Whether a buyer registered dealer of DEPB avail the input tax credit of tax paid on such purchase?

Hon’ble Haryana Tax Tribunal in its judgement in the case of Sadhu Overseas, Faridabad Vs State of Haryana has held that DEPB is not ‘Goods’ and are not chargeable to tax under the provisions of Haryana General Sales Tax Act, 1973. Earlier, Hon’ble Supreme Court of India, in the case of Vikas Sales