VAT AND SERVICE TAX CASES (VST)



PRINT EDITION

VOLUME 101 : PART 5 : ISSUE DATED 30-6-2017


HIGH COURTS


Best judgment assessment--Value added tax--Penalty--Filing untrue and incorrect returns--Dealer during audit proceedings admitting he filed a return showing zero sales deliberately to avoid payment of tax even though transactions entered in books of account--Refusal to allow dealer to file revised return or to take benefit of input-tax credit--Justified--Levy of penalty--Justified--On peculiar facts, direction for assessment of tax after verifying books of account and purchase bills and other relevant documents--Kerala Value Added Tax Act, 2003 (30 of 2004), ss. 22(2), 23(6)(a), 42(2)--Kerala Value Added Tax Rules, 2005, r. 22(4A).--Aboobacker v. State of Kerala (Ker) . . . 323

----Value added tax--Taxable turnover--Restaurant--Inspection--Assessing authority assessing cost of sale of items other than liquor at 50 per cent.--Appellate authority accepting dealer's figure of 10 per cent.--Revision--Restoration of order of assessing officer--No proper and satisfactory reasons recorded for conclusion whether or not figures arrived at by assessing officer correct--Order set aside and matter remanded--Karnataka Value Added Tax Act, 2003 (32 of 2004), s. 64(1).--Ronn Inn Bar and Restaurant v. Commissioner of Commercial Taxes (Karn) . . . 357

Central sales tax--Concessional rate of tax--Conditions precedent--Genuineness of transaction not in doubt--That form C declaration captures sales transaction having regard to date of delivery as against date when goods despatched--Not ground to reject form C declarations--Rule cannot be read in manner which takes away benefit provided in Act--Central Sales Tax Act (74 of 1956), s. 8--Central Sales Tax (Registration and Turnover) Rules, 1957, r. 12--Central Sales Tax (Tamil Nadu) Rules, 1957, r. 10--Circular No. 44/2015 D3/2573/2015, dated October 20, 2015.--Hewlett Packard India Sales Pvt. Ltd. v. State of Tamil Nadu (Mad) . . . 312

Declaration form--Central sales tax--Concessional rate of tax--Conditions precedent--Genuineness of transaction not in doubt--That form C declaration captures sales transaction having regard to date of delivery as against date when goods despatched--Not ground to reject form C declarations--Rule cannot be read in manner which takes away benefit provided in Act--Central Sales Tax Act (74 of 1956), s. 8--Central Sales Tax (Registration and Turnover) Rules, 1957, r. 12--Central Sales Tax (Tamil Nadu) Rules, 1957, r. 10--Circular No. 44/2015 D3/2573/2015, dated October 20, 2015.--Hewlett Packard India Sales Pvt. Ltd. v. State of Tamil Nadu (Mad) . . . 312

Exemption--Value added tax--Unit located in special economic zone--Meaning of "removed from a special economic zone to a domestic tariff area"--Removal must be correlated to taxable event--Inter-State stock transfer of goods from unit in special economic zone to branch outside State--Purchase tax not leviable--Tamil Nadu Value Added Tax Act (32 of 2006). s. 12--Central Sales Tax Act (74 of 1956)--Tamil Nadu Special Economic Zones (Special Provisions) Act (18 of 2005), ss. 2(f), 3, 12, 15, 28--Special Economic Zones Act (28 of 2005), ss. 2(c), 4(2) , 5(1), 15(9), 26, 29, 30.--Nokia India Sales Private Limited v. Assistant Commissioner (CT) (Mad) . . . 361

High Court--Sales tax--Reference--Advisory jurisdiction--Will not reappraise facts--Questions whether Tribunal was justified in holding that filter fabrics covered by entry 15 of Schedule A except for October 1, 1996 to April 30, 1998, that product covered by Central Excise Heading 54.06 and whether Tribunal was justified in adjudicating prayer for relief--Findings of Tribunal reaffirmed in reference order--No question of law arises--Bombay Sales Tax Act (51 of 1959), s. 61(1) ; Sch. A, entry 15, Sch. C, Part I, entry 17.--Commissioner of Sales Tax v. Polyfab Industries (Bom) . . . 331

Hotels and restaurant--See Best judgment assessment (Karn) . . . 357

Input-tax credit--Value added tax--Manufacture--Business of sale and purchase of wood and bamboo within State--Purchase wood and bamboo by dealer and sale after debarking and cutting including removal of roots--No new commodity--No manufacture involved--Benefit of input-tax credit under section 13 not available--Uttar Pradesh Value Added Tax Act (5 of 2008), ss. 2(t), 13.--Kalptaru Agro Forest Enterprises Pvt. Ltd. v. Commissioner, Commercial Tax (All) . . . 344

----Value added tax--Revised returns filed during year 2005-06 claiming input-tax credit on capital goods purchased during September 2005 to December 2005--Forms VAT 170 filed on April 19, 2006 and May 19, 2006--Authorities as well as Tribunal rejecting claim for year 2006-07, relying on order of rejection of claim by first appellate authority which became final for year 2005-06--Justified--Rejected input-tax credit cannot be carried to subsequent year--Karnataka Value Added Tax Act, 2003 (32 of 2004), s. 12--Karnataka Value Added Tax Rules, 2005, r. 133(e), proviso.--Ultra Tech Cement Limited v. State of Karnataka (Karn) . . . 352

----See also Best judgment assessment (Ker) . . . 323

Manufacture--Value added tax--Input-tax credit--Business of sale and purchase of wood and bamboo within State--Purchase wood and bamboo by dealer and sale after debarking and cutting including removal of roots--No new commodity--No manufacture involved--Benefit of input-tax credit under section 13 not available--Uttar Pradesh Value Added Tax Act (5 of 2008), ss. 2(t), 13.--Kalptaru Agro Forest Enterprises Pvt. Ltd. v. Commissioner, Commercial Tax (All) . . . 344

Penalty--Value added tax--Best judgment assessment--Filing untrue and incorrect returns--Dealer during audit proceedings admitting he filed a return showing zero sales deliberately to avoid payment of tax even though transactions entered in books of account--Refusal to allow dealer to file revised return or to take benefit of input-tax credit--Justified--Levy of penalty--Justified--On peculiar facts, direction for assessment of tax after verifying books of account and purchase bills and other relevant documents--Kerala Value Added Tax Act, 2003 (30 of 2004), ss. 22(2), 23(6)(a), 42(2)--Kerala Value Added Tax Rules, 2005, r. 22(4A).--Aboobacker v. State of Kerala (Ker) . . . 323

Reference--Sales tax--High Court--Advisory jurisdiction--Will not reappraise facts--Questions whether Tribunal was justified in holding that filter fabrics covered by entry 15 of Schedule A except for October 1, 1996 to April 30, 1998, that product covered by Central Excise Heading 54.06 and whether Tribunal was justified in adjudicating prayer for relief--Findings of Tribunal reaffirmed in reference order--No question of law arises--Bombay Sales Tax Act (51 of 1959), s. 61(1) ; Sch. A, entry 15, Sch. C, Part I, entry 17.--Commissioner of Sales Tax v. Polyfab Industries (Bom) . . . 331

Revision--Value added tax--Taxable turnover--Best judgment assessment--Restaurant--Inspection--Assessing authority assessing cost of sale of items other than liquor at 50 per cent.--Appellate authority accepting dealer's figure of 10 per cent.--Revision--Restoration of order of assessing officer--No proper and satisfactory reasons recorded for conclusion whether or not figures arrived at by assessing officer correct--Order set aside and matter remanded--Karnataka Value Added Tax Act, 2003 (32 of 2004), s. 64(1).--Ronn Inn Bar and Restaurant v. Commissioner of Commercial Taxes (Karn) . . . 357

Settlement of arrears--Value added tax--Karasamadhana Scheme--"Arrears of penalty and interest"--Definition--Scope --Penalty and interest imposed for delay in filing return--Eligible for settlement under Scheme--Direction to Assistant Commissioner to consider dealer's application for settlement under Scheme--Karnataka Value Added Tax Act, 2003 (32 of 2004), s. 72(1) --Karasamadhana Scheme, 2017.--Skill Tech Engineers and Contractors Pvt. Ltd. v. Finance Secretary (Karn) . . . 308

Special economic zone--Value added tax--Exemption--Unit located in special economic zone--Meaning of "removed from a special economic zone to a domestic tariff area"--Removal must be correlated to taxable event--Inter-State stock transfer of goods from unit in special economic zone to branch outside State--Purchase tax not leviable--Tamil Nadu Value Added Tax Act (32 of 2006). s. 12--Central Sales Tax Act (74 of 1956)--Tamil Nadu Special Economic Zones (Special Provisions) Act (18 of 2005), ss. 2(f), 3, 12, 15, 28--Special Economic Zones Act (28 of 2005), ss. 2(c), 4(2) , 5(1), 15(9), 26, 29, 30.--Nokia India Sales Private Limited v. Assistant Commissioner (CT) (Mad) . . . 361

Stock transfer--See Exemption (Mad) . . . 361

Turnover--See Best judgment assessment (Karn) . . . 357

Value added tax--Input-tax credit--Revised returns filed during year 2005-06 claiming input-tax credit on capital goods purchased during September 2005 to December 2005--Forms VAT 170 filed on April 19, 2006 and May 19, 2006--Authorities as well as Tribunal rejecting claim for year 2006-07, relying on order of rejection of claim by first appellate authority which became final for year 2005-06--Justified--Rejected input-tax credit cannot be carried to subsequent year--Karnataka Value Added Tax Act, 2003 (32 of 2004), s. 12--Karnataka Value Added Tax Rules, 2005, r. 133(e), proviso.--Ultra Tech Cement Limited v. State of Karnataka (Karn) . . . 352

----See Best judgment assessment (Karn) . . . 357

----See Exemption (Mad) . . . 361

----See Input-tax credit (All) . . . 344

----See Settlement of arrears (Karn) . . . 308

Words and phrases--"Arrears of penalty and interest"--Scope of definition.--Skill Tech Engineers and Contractors Pvt. Ltd. v. Finance Secretary (Karn) . . . 308

----Meaning of "removed from a special economic zone to a domestic tariff area".--Nokia India Sales Private Limited v. Assistant Commissioner (CT) (Mad) . . . 361

_____________
1

COMPANY LAW INSTITUTE OF INDIA (P) LTD.
No. 2 (Old No. 36), Vaithyaram Street,
T.Nagar, Chennai - 600017.
Phone: (044) 4217 8564, 2435 0752 - 755
Fax: (044) 2432 2015
info@cliofindia.com
To Unsubscribe : Reply back with "Unsubscribe" in subject followed by the key word "ITR" or "CC" or "VST" or "CCD" or "ITR (Trib)" or "GSTR", respectively or "All" if you do not want any Email. ITR : Income Tax Reports, CC : Company Cases, VST : VAT and Service Tax Cases, CCD : Consolidated Commercial Digest, GSTR : Goods and Service Tax Reports, ITR (Trib) : ITR'S Tribunal Tax Reports. Also send your feedback or comments to info@cliofindia.com

Formerly Commercial Laws of India P. Ltd. is now merged with Company Law Insititute of India Pvt. Ltd. by the order of the High Court dated September 3, 2015.