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2020 (3) TMI 816 - HC - VAT and Sales TaxLevy of tax - Job-work - trading and sales in absence of Form-F - Section 6 A of the Central Sales Tax Act - HELD THAT - The question regarding levy of sales act on the goods which are not accompanied by Form- F are on which the dealer cannot produce Form- F is no longer res-integra and has considered by the Hon'ble Supreme Court in the case of AMBICA STEELS LTD. VERSUS STATE OF UP. AND OTHERS 2009 (3) TMI 550 - SUPREME COURT where it was held that even in cases where the dealer cannot produce Form- F he can still demonstrate before the authorities that the said transaction is not a sale and for which the Court has allowed the dealer to produce relevant document and material and other evidences to prove that the said transaction was not a sale on which the Central Sales Tax cannot be levied. The Supreme Court has given liberty to the dealer to appear and submit before the assessing authority the material from which it can be determined as to the nature of the transaction and the assessing authority after considering the entire material would come to a finding as to whether provisions of Central Sales Tax would be applicable under said transaction or not. It is directed that the revisionist will appear and submit before the assessing authority alongwith a certified copy of this judgement in six weeks to complete the assessing proceedings with regard to the said transaction only, on its own merits, after examining the record of transactions between the parties, keeping in mind that the assessee has not in possession of Form- F - Revision disposed off.
Issues:
1. Levying tax on job work done by the company. 2. Justification of trading sales under Section 6A of the Central Sales Tax Act without Form-F. Analysis: (i) Levying Tax on Job Work: The revisionist challenged the tax levied on job work done during the assessment year 2004-2005 by the assessing authority under Section 6-A of the Central Sales Tax Act. The revisionist argued that no sale was involved in the job work, and the goods were returned to the concerned party outside the State without any transfer of title. The Joint Commissioner and the Trade Tax Tribunal rejected the revisionist's appeal, citing the absence of Form-F for the transaction as grounds for taxing the job work. The revisionist contended that the tax imposition was illegal and arbitrary as no sale occurred, and the title in the goods did not pass to them. (ii) Trading Sales under Section 6A without Form-F: The key issue revolved around the justification of levying sales tax under Section 6A of the Central Sales Tax Act in the absence of Form-F for the goods sent outside the State. The revenue argued that Section 6A mandates the production of Form-F for transactions involving transfer of goods, failing which sales tax would be imposed. The revisionist relied on a Supreme Court judgment in the case of M/s Ambica Steels Limited, which allowed dealers unable to produce Form-F to demonstrate the transaction was not a sale. The Court permitted the revisionist to submit relevant documents and evidence to prove the nature of the transaction and directed them to appear before the assessing authority with a certified copy of the judgment to complete the assessment proceedings. In conclusion, the High Court directed the revisionist to present the judgment before the assessing authority within six weeks to determine the applicability of Central Sales Tax to the transaction. The Court set aside the Tribunal's order, allowing the revision and disposing of the case based on the Supreme Court's guidance regarding transactions without Form-F.
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