VAT AND SERVICE TAX CASES (VST)

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VOLUME 90 : PART 1 : ISSUE DATED 29-4-2016


HIGH COURTS


Account books--See Central sales tax (Cal) . . . 15

Appeal--Value added tax--Appeal to Commissioner (Appeals)--Condition that 25 per cent. of demand be deposited for entertainment of appeal--Valid--Appellate authority has power to grant interim injunction of partial or complete waiver of pre-deposit--Punjab Value Added Tax Act (8 of 2005), s. 62(5)--Punjab Value Added Tax Rules, 2005--Constitution of India, art. 14.--Punjab State Power Corporation Limited v. State of Punjab (P&H) . . . 66

----See also Change of law (Ker) . . . 29

Assessment--Sales tax--Return--Provisions of section 33(3) and 33(5) mutually exclusive--However returns filed belatedly can also be processed under section 33(3)--Bombay Sales Tax Act (51 of 1959), s. 33(3), (5).--Commissioner of Sales Tax v. Veer Radios (Bom) . . . 37

----See Change of law (Ker). . . 29

----See Natural justice (Jharkhand) . . . 18

Attachment--See Recovery of tax (Mad). . . 53

Central sales tax--Exemption--Export of tea to Bhutan--Maintenance of separate accounts pertaining to sale through auction and private sale in same book but not relatable to each other--Sufficient compliance with notification requiring "separate records"--Direction to assessee to produce relevant records before Board for it to examine and conclude whether accounts separately maintained as required--Matter regarding Bhutan transaction remanded to Board to look into best documents that might be produced by assessee in support of his claim of export of tea to Bhutan--Central Sales Tax Act (74 of 1956)--Notification dated August 2, 2002.--Bishnu Dutt Agarwal v. Sales Tax Officer (Cal) . . . 15

----See also Transfer of right to use goods (Delhi) . . . 1

Change of law--Value added tax--Assessment--Appealable orders--Appeal--VAT authorities--Penalty--Order imposing penalty on assessee becoming non-appealable in view of Amendment of section 55 by Finance Act, 2014--However such order pending in appeal before Deputy Commissioner (Appeals) on date of bill to be considered as appeal filed before jurisdictional Deputy Commissioner on being transferred to it--Kerala Value Added Tax Act, 2003 (30 of 2004), ss. 44(8), 55(1), third proviso.--Attinkara Electronics Division v. State of Kerala (Ker) . . . 29

----See also Recovery of tax (Mad) . . . 53

Construction of taxing statutes--Proviso--Regulates enabling provision.--Parijat Vyappar Private Limited v. Union of India (Cal) . . . 57

Declaration forms--See Transfer of right to use goods (Delhi). . . 1

Direct-to-home broadcast service providers--Luxury tax--Legislative powers--State Legislature--Levy of luxury tax within legislative competence of State Legislature--Discrimination--Services provided by direct-to-home service providers and cable television operators similar--Differences in technology used or number of intermediaries involved in delivery of entertainment content cannot be basis of classification--Levy on direct-to-home service providers without similar levy on cable television operators--Discriminatory--Kerala Tax on Luxuries Act (32 of 1976), ss. 2(da), (db), (fd), (l), 4, 4D--Constitution of India, art. 14 ; Sch. VII, List I, entries 92C, 97, List II, entry 61.--Bharati Telemedia Ltd. v. Union of India (Ker) . . . 124

Discrimination--See Luxury tax (Ker) . . . 124

Evasion of tax--See Penalty (Raj) . . . 22

Exemption--See Central sales tax (Cal) . . . 15

Input-tax credit--Value added tax--Invisible loss of yarn in manufacture--Writ--Department to follow directions of court in Interfit Techno Products Ltd. v. Principal Secretary/Commissioner of Commercial Taxes [2015] 81 VST 389 (Mad) while passing fresh orders--Tamil Nadu Value Added Tax Act (32 of 2006), ss. 18, 19.--Global Calcium P. Ltd. v. Assistant Commissioner (Commercial Taxes) (Mad) . . . 42

----Value added tax--Invisible loss of yarn pursuant to manufacturing activity--Department to follow directions of court in Interfit Techno Products Ltd. v. Principal Secretary/Commissioner of Commercial Taxes [2015] 81 VST 389 (Mad), while passing fresh orders--Tamil Nadu Value Added Tax Act (32 of 2006), ss. 18, 19.--Asian Fabrix Private Ltd. v. Principal Secretary/Commissioner of Commercial Taxes (Mad) . . . 45

----See also Input-tax credit (Cal) . . . 12

Inspection--See Jurisdiction (Mad) . . . 64

Inter-State sale--See Transfer of right to use goods (Delhi) . . . 1

Interest--Sales tax--Sale price--Taxable turnover--Goods sold and delivered by seller based on invoices raised--Buyer agreeing to pay interest for belated payment of sale price in same invoice--Interest part and parcel of contract of sale--Includible in taxable turnover--Tamil Nadu General Sales Tax Act (1 of 1959), s. 2(r).--Raj Lubricants (M) Private Ltd. v. State of Tamil Nadu (Mad) . . . 49

Jurisdiction--Value added tax--Inspection--No jurisdiction in Enforcement Wing Officials to collect tax without verification of monthly returns before completion of assessment--Tamil Nadu Value Added Tax Act (32 of 2006), s. 64(4).--Kannan Stores v. Commissioner Tax Officer (CT) (Mad) . . . 64

Legislative powers--See Luxury tax (Ker) . . . 124

Luxury tax--Legislative powers--State Legislature--Direct-to-home broadcast service providers--Levy of luxury tax within legislative competence of State Legislature--Discrimination--Services provided by direct-to-home service providers and cable television operators similar--Differences in technology used or number of intermediaries involved in delivery of entertainment content cannot be basis of classification--Levy on direct-to-home service providers without similar levy on cable television operators--Discriminatory--Kerala Tax on Luxuries Act (32 of 1976), ss. 2(da), (db), (fd), (l), 4, 4D--Constitution of India, art. 14 ; Sch. VII, List I, entries 92C, 97, List II, entry 61.--Bharati Telemedia Ltd. v. Union of India (Ker). . . 124

Manufacture--See Input-tax credit (Mad) . . . 42, 45

Natural justice--Assessment--Condition precedent--Opportunity to be heard--Typographical error on part of assessee, a wholly owned Government undertaking--Enhancement of turnover by huge amount without notice or opportunity to be heard--Assessment liable to be quashed.--Bharat Coking Coal Limited v. State of Jharkhand (Jharkhand). . . 18

Penalty--Value added tax--Evasion of tax--Rate of tax--Manufacturer of Sewai (vermicelli) macaroni and pasta--Finding by authorized officers during survey operation that tax paid at four per cent. only as against 12.5 per cent.--All transactions stood recorded and disclosed--Finding of fact that issue about rate of tax debatable--Manufacturer not guilty of concealing any material information or furnishing inaccurate particulars with intention to evade tax--Penalty not warranted--Rajasthan Value Added Tax Act (4 of 2003), s. 61.--Commercial Taxes Officer v. Bambino Agro Industries Ltd. (Raj). . . 22

----See also Change of law (Ker) . . . 29

Pre-deposit--See Appeal (P&H). . . 66

Rate of tax--See Penalty (Raj) . . . 22

Recovery of tax--Value added tax--Indian-made foreign liquor--Attachment of bank accounts--Assessees selling liquor in bar attached to their hotels--Writ petition challenging amendment imposing third point of tax on third point of sale in State on total turnover dismissed--Special leave petition filed and matter pending before Supreme Court--Demand notices issued and bank account attached--Writ petition--Direction to assessees to deposit entire arrears in eight equal monthly instalments attachment of bank account being withdrawn on payment of first instalment--Tamil Nadu Value Added Tax Act (32 of 2006), s. 3(5) ; Sch. II, entry 2--Tamil Nadu Liquor (Licence and Permit) Rules, 1981.--T. Raja v. Assistant Commissioner of Commercial Taxes (Mad) . . . 53

----See also Service tax (Cal) . . . 57, 117

Registered dealers--See Input-tax credit (Cal) . . . 12

Return--See Assessment (Bom). . .37

----See Jurisdiction (Mad) . . . 64

Sale price--See Interest (Mad) . . . 49

Service tax--Recovery of tax--Service Tax Voluntary Compliance Encouragement Scheme, 2013--Assessee making declaration under scheme but not paying 50 per cent. of "tax dues" on/or before December 31, 2013--Authority can proceed under section 87 and also under section 89 of Finance Act--Finance Act (32 of 1994), ss. 87, 89--Service Tax Voluntary Compliance Encouragement Scheme, 2013, ss. 107(3), (4), 110.--Commissioner of Service Tax v. Parijat Vyappar Private Limited (Cal) . . . 117

----Recovery of tax--Voluntary Compliance Encouragement Scheme, 2013--Scope of--Proviso inserted under sub-section (4) of section 107 applicable only in respect of sub-section (4) and not sub-section (3)--Any default committed under scheme by declarant attracts section 110 providing for recovery under section 87 of Finance Act, 1994 --Finance Act (32 of 1994), s. 87--Service Tax Voluntary Compliance Encouragement Scheme, 2013, ss. 107(3), (4), proviso (7), 102, 108, 110.--Parijat Vyappar Private Limited v. Union of India (Cal) . . . 57

Service Tax Voluntary Compliance Encouragement Scheme--See Service tax (Cal) . . . 117

State Legislature--See Luxury tax (Ker). . . 124

Transfer of right to use goods--Central sales tax--Inter-State sale or local sale--Deemed sale--Situs of sale--Lease agreement entered into in Delhi and goods moving from Maharashtra to Delhi pursuant thereto--Inter-State sale--Direction to issue C forms--Constitution of India, art. 366(29A) ; Sch. VII, List I, entry 92A, List II, entry 54--Central Sales Tax Act (74 of 1956), ss. 2(g)(iv), 3, 8, 9.--Tata Power Delhi Distribution Ltd. v. Commissioner of Sales Tax (Delhi) . . . 1

Turnover--See Interest (Mad) . . . 49

Value added tax--See Appeal (P&H) . . . 66

----See Change of law (Ker) . . . 29

----See Input-tax credit (Cal) . . . 12, (Mad) . . . 42, 45

----See Jurisdiction (Mad) . . . 64

----See Penalty (Raj) . . . 22

----See Recovery of tax (Mad) . . . 53

VAT authorities--See Change of law (Ker) . . . 29
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