2015 (10) TMI 625 - HC - VAT and Sales Tax

Valuation - Inclusion of incidental charges - Determination of taxable turnover - Held that - Primary issue that arises for consideration relates to the date from which the interest would be chargeable, i.e., whether interest is leviable from the date of assessment order in question or from the date of assessment order by which assessing authority has taxed the incidental charges for the first time for any assessment year. Again, it was not dis puted that the issue stands concluded by the judgment of the honourable apex court in J. K. Synthetics Ltd. v. Commercial Taxes Officer 1994 (5) TMI 233 - SUPREME COURT wherein it has been held that the interest is payable by the dealer from the date of the passing of the assessment order. Accordingly, it is held that the interest would be chargeable from the date of the passing of the assessment order in question and not from the date of passing of assessment order in any other year by which assessing authority has taxed the incidental charges for the first time. - Appeal disposed of.

Summary

Issues:
- Interpretation of including incidental charges in the gross turnover.
- Levying interest from the date of assessment order.
- Adjudication of interest issue by the Tribunal.
- Justification of upholding interest from the date of order by Assessing Authority.

Interpretation of Including Incidental Charges:
The appellant, engaged in procurement of goods, contested additional demand raised for incidental charges like dami, dalali, and mandi. The Tribunal remanded the matter for fresh assessment, upholding the tax on incidental charges and interest from the date of first assessment. The Tribunal's decision was influenced by a previous court judgment. The court upheld the Tribunal's decision based on a similar case precedent, concluding against the appellant.

Levying Interest from the Date of Assessment Order:
The primary issue was determining the date from which interest would be chargeable. The court referred to a Supreme Court judgment stating that interest is payable from the date of the assessment order. Therefore, interest would be levied from the date of the passing of the assessment order in question, not from the date of any other assessment order.

Adjudication of Interest Issue by the Tribunal:
The Tribunal had previously adjudicated the interest issue contrary to its earlier decision. However, the court referred to established legal principles from the Supreme Court, concluding that interest is chargeable from the date of the assessment order. The court upheld this position, disposing of the appeals accordingly.

Justification of Upholding Interest from the Date of Order by Assessing Authority:
The Tribunal's decision to uphold interest from the date of order by the Assessing Authority who first taxed the incidental charges was challenged. However, the court relied on legal precedents and established principles to affirm that interest is chargeable from the date of the assessment order. Consequently, the appeals were disposed of in line with this legal interpretation.