Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2020 (3) TMI HC This

  • Login
  • Cases Cited
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2020 (3) TMI 816 - HC - VAT and Sales Tax


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.

 

 

 

 

Quick Updates:Latest Updates