The Appellant challenged the High Court of Gujarat's judgment affirming the Gujarat Value Added Tax Tribunal's (Tribunal) decision in favor of Respondent. The key issue was whether Value Added Tax (VAT) and purchases on which no tax credit was claimed or granted should be included in the taxable turnover of purchases for reducing tax credit under Section 11(3)(b) of the Gujarat Value Added Tax Act, 2003 (GVAT Act). The Tribunal and High Court held that such VAT and purchases should be excluded, and the Supreme Court upheld this interpretation, dismissing the State's appeal.

1. Introduction

• State of Gujarat challenged High Court's judgment affirming Tribunal's order in favor of M/s Ambuja Cement, Ltd.

2. Appellant's Plea

• Courts erred in excluding VAT and unclaimed purchases from taxable turnover under Section 11(3)(b) of GVAT Act.

3. Substantial Questions of Law

• [1] Tribunal's error in excluding VAT from "taxable turnover of purchases" under Section 11(3)(b).
• [2] Tribunal's error in excluding purchases on which VAT was not claimed or granted from "taxable turnover of purchases."

4. Appellant's Argument

• Respondent wrongly excluded VAT and unclaimed purchases to reduce taxable turnover.
• Assessing officer correctly included these in the taxable turnover under Section 2(32) of GVAT Act.

5. Legislative Intent Misinterpreted

• VAT should be included in the purchase price as defined under Section 2(18) of GVAT Act.
• High Court and Tribunal judgments should be set aside.

6. Respondent's Argument

• Tribunal and High Court correctly interpreted statutory provisions.
• Purchase price definition does not include VAT; only duties under Central Excise Tariff Act and Customs Act are included.
• Legislature did not intend to include VAT in the purchase price.

7. Scope of Section 11(3)(b)

• Cannot expand beyond provisions of GVAT Act.
• Appeal should be dismissed.

8. Court's Consideration

• Reviewed submissions, provisions, and pleadings.

9. Facts of the Case

• Respondent calculated taxable turnover by excluding VAT and unclaimed purchases.
• Deputy Commissioner included these amounts, leading to appeals by Respondent.
• Tribunal and High Court excluded these amounts from taxable turnover.

10. Issue

• Definition of Purchase Price under Section 2(18) of GVAT Act.

11. Definition of Purchase Price

• "Purchase price" means the amount paid for purchases, including duties under Central Excise Tariff Act and Customs Act, excluding VAT.

12. Interpretation of Statutes

• Statutes must be read as they are; clear and unambiguous words must be given effect.
• Tax statutes to be interpreted strictly.

13. Relevant Case Law

• Commissioner of Wealth Tax, Gujarat-III, Ahmedabad v. Ellis Bridge Gymkhana: Charging section must be clear; no tax by implication.
• P. Kasilingam and Others v. P.S.G. College of Technology and Others: "Means and includes" indicates exhaustive definition.

14. Definition Analysis

• Purchase price definition is exhaustive and enumerative.
• Excludes VAT from purchase price under GVAT Act.

15. Turnover of Purchases

• Defined as aggregate of purchase price after deducting refunded amounts.

16. Tax Credit Calculation

• Section 11 outlines tax credit entitlement and reduction by 4% for certain purchases.

17. Court's Conclusion

• Purchase price excludes VAT and unclaimed purchases.
• Tribunal and High Court correctly calculated taxable turnover.

18. Tribunal's Order Upheld

• Appeals dismissed; Tribunal's order upheld.

19. Appeals Dismissed

• High Court's judgment affirmed; no interference warranted.

20. Transfer Cases

• Transfer Cases allowed in light of judgment in Appeals.

21. Final Decision

• Appeals stand dismissed; Transfer Cases allowed.