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2005 (5) TMI 322 - SUPREME COURTEight show cause notices - liability for payment of sales tax on account of sales made by them for the period covered by the notices Held that:- Appeal allowed. The writ petition challenging the eight show cause notices was also allowed by the High Court appears to have proceeded on the basis that the show cause notice had been issued on the basis that the eligibility certificate had been wrongly obtained. It is apparent from the narration of facts that the show cause notices were in fact issued for the period prior to the grant of the eligibility certificate. It cannot be said, therefore, that the show cause notices proceeded on the basis that the eligibility certificate was invalid. All that the appellants proposed to do was to hold the respondent liable to pay sales tax in respect of the amount admittedly collected by the respondent on account of sales tax until it was granted the eligibility certificate. Thus the High Court proceeded on an incorrect basis.
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