Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2010 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (3) TMI 1034 - PUNJAB AND HARYANA HIGH COURTWhether the State Government is competent to impose tax on the transfer of goods by the petitioner-company to its godown outside the State of Haryana taking recourse to Explanation to rule 28A(2)(n)(i) and 28A(11)(b) of the 1975 Rules? Held that:- Object of rule 28 of the 1975 Rules, is on what terms and conditions exemption can be availed of. Terms and conditions to avail of exemption does not mean, giving authority to the State Government to recover tax, which the State Government is otherwise not competent to do so. In view of the above, we find the vires of Explanation to rule 28 of the 1975 Rules are not in question and Explanation to rule 28 does not give power to the State to impose tax, which the State Government otherwise is not competent to impose in the normal course. Undisputedly, the assessing authority has assessed tax considering all the transactions as sale, including the inter-State transfer of the consignment, which is not legal as per the observations made hereinabove. Tax can be only on transactions, which amount to sale, hence assessment orders require reconsideration in the light of the observations made hereinabove. The impugned assessment orders are, therefore, quashed. The assessing authorities are directed to pass assessment orders afresh, in accordance with law. Appeal allowed.
|