2002 (4) TMI 916 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of circular dated January 15, 1988 regarding waiver of tax liability.
2. Consideration of evidence and documentation required for exemption under the U.P. Trade Tax Act.
3. Authority of assessing officer to grant waiver of tax under section 10-B.

Analysis:
1. The judgment pertains to a trade tax revision under the U.P. Trade Tax Act challenging an order passed in a Second Appeal. The case involves the loss of forms III-C(2) and III-C(5) by the applicant-revisionist, who deals in declared commodities. The assessing authority waived the tax liability in view of the lost forms based on a circular dated January 15, 1988. However, the Deputy Commissioner initiated proceedings under section 10-B and overturned the waiver, leading to an appeal before the Tribunal, which upheld the Deputy Commissioner's decision.

2. The key issue raised was whether the Tribunal should have remanded the case to the assessing authority for further inquiries to obtain the required certificate as per the circular. The applicant-revisionist argued that the Deputy Commissioner failed to appreciate the circular's scope and that the waiver should have been granted considering that the tax had already been paid by the selling dealer. Reference was made to a Supreme Court judgment highlighting the importance of furnishing declaration forms for exemption under the Sales Tax Act.

3. The High Court, after considering the arguments and legal precedents, set aside the Tribunal's order and directed the matter to be reconsidered. The Court emphasized the necessity for the assessing officer to follow the formalities and requirements of the circular dated January 15, 1988, in granting waivers. It was ruled that the assessing officer should have the power to provide waivers, subject to compliance with the circular's provisions. The judgment allowed the petition, providing a certified copy of the order to the applicant's counsel for further action, and instructed the assessing authority to expedite the matter within a specified timeframe.