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2016 (8) TMI 1339 - HC - VAT and Sales Tax


Issues:
1. Challenge to order passed by Joint Commissioner, Commercial Taxes
2. Determination of whether sale is inter-State or intra-State
3. Compliance with time limit for reassessment under Bihar Finance Act

Issue 1 - Challenge to Order:
The petitioner challenged the order passed by the Joint Commissioner, Commercial Taxes, Dhanbad, arguing that the assessing officer had already issued an order in 2003 for the period 2001-02. The petitioner contended that the subsequent movement of goods did not affect the initial sale, which was a "counter sale" within the state. The petitioner emphasized that the burden of proof rested with the State to establish that the movement of goods between states was due to the sale. The respondent argued that under the Central Sales Tax Act, movement of goods between states was presumed to indicate an inter-State sale unless proven otherwise. The respondent highlighted that the petitioner had paid Central sales tax and obtained road permits for inter-State transportation, but no fresh order had been issued by the assessing officer after the matter was remanded.

Issue 2 - Sale Classification:
The primary issue revolved around determining whether the sale of hard coke was an inter-State or intra-State sale. The petitioner maintained that the sale occurred at their business premises as a "counter sale," distinct from subsequent movements of goods. The respondent contended that the movement of goods immediately after the sale indicated an inter-State transaction, with the burden on the petitioner to rebut this presumption. The court noted the lack of evidence presented by the petitioner to counter the presumption of inter-State sale, emphasizing the need for verification through examination of the petitioner's records.

Issue 3 - Time Limit for Reassessment:
The court examined the time limit for reassessment under the Bihar Finance Act, specifically focusing on the proviso to section 24. It was highlighted that no fresh order had been passed by the assessing officer following the revisional order in 2007, leading to a lapse of over two years without reassessment. Consequently, the court concluded that no reassessment order could be issued due to the statutory time limit, rendering the order by the Joint Commissioner ineffective. Despite the availability of alternative remedies, the court decided to allow the writ petition based on the statutory limitation, emphasizing that the proviso to section 24 precluded any reassessment at that stage.

In conclusion, the court allowed and disposed of the writ petition based on the statutory time limit for reassessment, highlighting the significance of compliance with legal provisions in tax matters.

 

 

 

 

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