VAT AND SERVICE TAX CASES (VST)

ONLINE EDITION

VOL. 4 : ISSUE DATED 26-6-2015

HIGH COURT


Trade tax--Rectification of mistake--All goods and wares made of glass but not including plain glass panes, optical lenses, hurricane lantern chimneys, etc.--Order assessing dealer at ten per cent. on float glass--Rectification on ground imported float glass assessable at fifteen per cent.--Tribunal holding no power to rectify as no rectifiable error--Valid--U. P. Trade Tax Act (15 of 1948), s. 22.--Commissioner, Commercial Tax v. Ambica Traders (Uttarakhand) . . . 718


PRINT EDITION

VOLUME 81 : PART 4 : ISSUE DATED 26-6-2015


HIGH COURTS


Appeal--Service tax--Writs under Constitution--Appeals from order of assessing authority dismissed by appellate authorities on ground of delay--Writ petition against order of assessing authority will not be entertained--Constitution of India, art. 226.--Star Enterprises v. Joint Commissioner (T and AP) . . . 512

----Value added tax--Appeal to Appellate Tribunal--Appeal against levy of penalty--Tribunal not entitled to go into question of liability to tax--Order for forfeiture of sum paid as tax--Not sustainable--Karnataka Value Added Tax Act, 2003 (32 of 2004), s. 47(2)(b).--State of Karnataka v. GMR Energy Limited (Karn) . . . 500

Assessment--Betting tax--No provision for assessment and determination of tax payable by book-maker on allegations of suppression of turnover or on allegation of retention of tax monies collected by book-maker illegally--Hyderabad Horse Racing and Betting Tax Regulation of 1358 Fasli.--Satty & Associates v. Joint Commissioner (CT) (T and AP) . . . 454

Betting tax--No provision for assessment and determination of tax payable by book-maker on allegations of suppression of turnover or on allegation of retention of tax monies collected by book-maker illegally--Hyderabad Horse Racing and Betting Tax Regulation of 1358 Fasli.--Satty & Associates v. Joint Commissioner (CT) (T and AP) . . . 454

Burden of proof--See Input-tax credit (Mad) . . . 389

Circulars and clarifications--Commissioner--Power to issue instructions--Quasi-judicial functions such as assessment or refund--Authority to apply mind independently--Circular merely guideline.--Interfit Techno Products Ltd. v. Principal Secretary/Commissioner of Commercial Taxes (Mad) . . . 389

Commissioner--Power to issue instructions--Quasi-judicial functions such as assessment or refund--Authority to apply mind independently--Circular merely guideline.--Interfit Techno Products Ltd. v. Principal Secretary/Commissioner of Commercial Taxes (Mad) . . . 389

Declaration forms--Sales tax--Registered dealers--Purchase of rice bran free of tax on strength of declaration form XXXIV and sale to S. S. I. units free of tax against declaration form 1D--Whether selling dealer contravened declaration given by it--Writ petition--Division Bench referring matter to Full Bench in view of conflicting opinions in State of Orissa v. Sahoo Traders (S. J. C. No. 27 of 1990 disposed of on December 22, 1994--Orissa High Court) and Tilakraj Mediratta v. State of Orissa [1992] 86 STC 453 (Orissa)--Decisions dealing with different subjects, different texts and different provisions of Act--No conflict in views expressed by court--Orissa Sales Tax Act (14 of 1947), s. 5(2)(A)(a)(i), (ii).--Manisha Enterprises v. State of Orissa [FB] (Orissa) . . . 432

Declared goods--See Entry tax (Gauhati) . . . 445

Deduction--See Turnover (Delhi) . . . 461

Discount--Taxable turnover--Sales tax--Sale price--Definitions--Turnover discount --Deductible--Delhi Sales Tax Act (43 of 1975), ss. 2(o), (m), 3.--MRF Limited v. Commissioner of Trade and Taxes (Delhi) . . . 461

Discrimination--Trade tax--Rate of tax--State Legislature--Legislative powers--Power to impose tax on goods imported from outside India--Higher tax on goods imported from outside India as opposed to goods made in India--Not discriminatory--U. P. Trade Tax Act (15 of 1948), s. 3A(1)(b)--Notification No. KA-NI-2-2800/XI-9(124)/90-U. P. Act-15-48-Order-(41)-2001 dated September 13, 2001.--Brij Mohan Amit Kumar v. State of U. P. (All) . . . 487

Entry tax--Entries in Schedule--Exemption--Declared goods--Import of hot rolled sheets in coil and processed and sold as cold rolled sheets in coil form--Goods remain same--Dealer entitled to exemption--Assam Entry Tax Act (12 of 2008), s. 3(2) ; Sch., entry 50(iv).--PDP Steels Limited v. State of Assam (Gauhati) . . . 445

----Exemption--Specified goods--Registered dealer--Tea imported from outside, blended with local varieties and sold in packed condition both inside and outside State--Tea even after blending remained as specified goods--Value added tax paid on sale in State and Central sales tax on inter-State sale--Entry tax not attracted on imported tea--Assam Entry Tax Act (12 of 2008).--Tata Tea Ltd. v. State of Assam (Gauhati) . . . 442

Entries in Schedule--See Entry tax (Gauhati) . . . 442, 445

Evasion of tax--Value added tax--Penalty--Dealer collecting tax from buyer and paying to Government--Filing return with delay of 11 days and paying tax with interest--No intention to evade tax--Levy of penalty not justified--Karnataka Value Added Tax Act, 2003 (32 of 2004), s. 72(2).--State of Karnataka v. GMR Energy Limited (Karn) . . . 500

Exemption--Entry tax--Entries in Schedule--Declared goods --Import of hot rolled sheets in coil and processed and sold as cold rolled sheets in coil form--Goods remain same--Dealer entitled to exemption--Assam Entry Tax Act (12 of 2008), s. 3(2) ; Sch., entry 50(iv).--PDP Steels Limited v. State of Assam (Gauhati) . . . 445

----Entry tax--Specified goods--Registered dealer--Tea imported from outside, blended with local varieties and sold in packed condition both inside and outside State--Tea even after blending remained as specified goods--Value added tax paid on sale in State and Central sales tax on inter-State sale--Entry tax not attracted on imported tea--Assam Entry Tax Act (12 of 2008).--Tata Tea Ltd. v. State of Assam (Gauhati) . . . 442

Forfeiture--See Appeal (Karn) . . . 500

Input-tax credit--Value added tax--Zero-rated sales--Conditions precedent for refund of input tax--Subject to provisions of section 19--Burden on dealer to establish claim--Application in form W for refund of input tax--Liable to verification--Matter can be reopened if refund wrongly made--Refund of input-tax credit on input lost during manufacture and not forming part of final product--Assessing authority cannot call for reversal of credit on basis of uniform percentage--Matter to be examined by authority--Court will not go into facts in writ petition--Tamil Nadu Value Added Tax Act (32 of 2006), ss. 2(23), (24), (44), 18, 19--Tamil Nadu Value Added Tax Rules, 2007, r. 11 ; Form W.--Interfit Techno Products Ltd. v. Principal Secretary/Commissioner of Commercial Taxes (Mad) . . . 389

Inter-State sale--Inter-State sale or local sale--Goods transferred from dealer's office at Faridabad to Delhi against F form issued by Delhi office of dealer and duly entered in stock register--Goods then sold to buyer against proper invoices and also reflected in return--Delivery of goods to party in Delhi en route--No material to show that goods moved as result of contract--Sale rightly taxed as local sale in Delhi--Central Sales Tax Act (74 of 1956), s. 3(a).--MRF Limited v. Commissioner of Trade and Taxes (Delhi) . . . 461

Interpretation of taxing statutes--Strict construction.--Satty & Associates v. Joint Commissioner (CT) (T and AP) . . . 454

Jurisdiction--See Commissioner (Mad) . . . 389

Legislative powers--Trade tax--Discrimination--Rate of tax--State Legislature--Power to impose tax on goods imported from outside India--Higher tax on goods imported from outside India as opposed to goods made in India--Not discriminatory--U. P. Trade Tax Act (15 of 1948), s. 3A(1)(b)--Notification No. KA-NI-2-2800/XI-9(124)/90-U. P. Act-15-48-Order-(41)-2001 dated September 13, 2001.--Brij Mohan Amit Kumar v. State of U. P. (All) . . . 487

Penalty--Value added tax--Evasion of tax--Dealer collecting tax from buyer and paying to Government--Filing return with delay of 11 days and paying tax with interest--No intention to evade tax--Levy of penalty not justified--Karnataka Value Added Tax Act, 2003 (32 of 2004), s. 72(2).--State of Karnataka v. GMR Energy Limited (Karn) . . . 500

----Value added tax--Understatement of liability in return--Return--Includes revised return--Revised return filed within 24 days and tax and interest paid--No question of levy of penalty--Karnataka Value Added Tax Act, 2003 (32 of 2004), ss. 2(28), 35, 42(7), 72(2).--Indus Towers Limited v. State of Karnataka (Karn) . . . 505

----See also Appeal (Karn) . . . 500

Rate of tax--See Discrimination (All) . . . 487

Rectification of mistake--Sales tax--Value added tax--Appellate Tribunal--No power to review order--Rajasthan Sales Tax Act, 1994 (22 of 1995), s. 37--Rajasthan Value Added Tax Act (4 of 2003), s. 33.--Assistant Commercial Taxes Officer v. S. K. Traders (Raj) . . . 481

Refund--See Input-tax credit (Mad) . . . 389

Registered dealers--Sales tax--Declaration forms--Purchase of rice bran free of tax on strength of declaration form XXXIV and sale to S. S. I. units free of tax against declaration form 1D --Whether selling dealer contravened declaration given by it--Writ petition--Division Bench referring matter to Full Bench in view of conflicting opinions in State of Orissa v. Sahoo Traders (S. J. C. No. 27 of 1990 disposed of on December 22, 1994--Orissa High Court) and Tilakraj Mediratta v. State of Orissa [1992] 86 STC 453 (Orissa)--Decisions dealing with different subjects, different texts and different provisions of Act--No conflict in views expressed by court--Orissa Sales Tax Act (14 of 1947), s. 5(2)(A)(a)(i), (ii).--Manisha Enterprises v. State of Orissa [FB] (Orissa) . . . 432

----See also Entry tax (Gauhati) . . . 442

Return--Value added tax--Penalty--Understatement of liability in return--Includes revised return--Revised return filed within 24 days and tax and interest paid--No question of levy of penalty--Karnataka Value Added Tax Act, 2003 (32 of 2004), ss. 2(28), 35, 42(7), 72(2).--Indus Towers Limited v. State of Karnataka (Karn) . . . 505

Review--See VAT Tribunal(Raj) . . . 481

Sale price--See Turnover (Delhi) . . . 461

Service tax--See Writs under Constitution (T and AP) . . . 512

State Legislature--See Discrimination (All) . . . 487

Stock transfer--Inter-State sale or local sale--Goods transferred from dealer's office at Faridabad to Delhi against F form issued by Delhi office of dealer and duly entered in stock register--Goods then sold to buyer against proper invoices and also reflected in return--Delivery of goods to party in Delhi en route--No material to show that goods moved as result of contract--Sale rightly taxed as local sale in Delhi--Central Sales Tax Act (74 of 1956), s. 3(a).--MRF Limited v. Commissioner of Trade and Taxes (Delhi) . . . 461

Turnover--Sales tax--Taxable turnover--Sale price--Definitions--Discount--Turnover discount--Deductible--Delhi Sales Tax Act (43 of 1975), ss. 2(o), (m), 3.--MRF Limited v. Commissioner of Trade and Taxes (Delhi) . . . 461

Value added tax--See also Appeal(Karn) . . . 500

--See also Input-tax credit (Mad) . . . 389

--See also Penalty (Karn) . . . 500, 505

--See also VAT Tribunal (Raj) . . . 481

VAT Tribunal--Sales tax--Value added tax--Appellate Tribunal--Rectification of mistakes--No power to review order--Rajasthan Sales Tax Act, 1994 (22 of 1995), s. 37--Rajasthan Value Added Tax Act (4 of 2003), s. 33.--Assistant Commercial Taxes Officer v. S. K. Traders (Raj) . . . 481

----Value added tax--Appeal to Appellate Tribunal--Appeal against levy of penalty--Tribunal not entitled to go into question of liability to tax--Order for forfeiture of sum paid as tax--Not sustainable--Karnataka Value Added Tax Act, 2003 (32 of 2004), s. 47(2)(b).--State of Karnataka v. GMR Energy Limited (Karn) . . . 500

Writs under Constitution--Service tax--Appeals from order of assessing authority dismissed by appellate authorities on ground of delay--Writ petition against order of assessing authority will not be entertained--Constitution of India, art. 226.--Star Enterprises v. Joint Commissioner (T and AP) . . . 512

----See also Input-tax credit (Mad) . . . 389

Zero-rated sales--Value added tax--Input-tax credit--Conditions precedent for refund of input tax--Subject to provisions of section 19--Burden on dealer to establish claim--Application in form W for refund of input tax--Liable to verification--Matter can be reopened if refund wrongly made--Refund of input-tax credit on input lost during manufacture and not forming part of final product--Assessing authority cannot call for reversal of credit on basis of uniform percentage--Matter to be examined by authority--Court will not go into facts in writ petition--Tamil Nadu Value Added Tax Act (32 of 2006), ss. 2(23), (24), (44), 18, 19--Tamil Nadu Value Added Tax Rules, 2007, r. 11 ; Form W.--Interfit Techno Products Ltd. v. Principal Secretary/Commissioner of Commercial Taxes (Mad) . . . 389
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