2013 (1) TMI 700 - HC - VAT and Sales Tax

Summary

Issues involved: Interpretation of tax laws u/s 36(1) of the Haryana Value Added Tax Act, 2003 regarding purchase tax on paddy in relation to rice procurement prices for different crop years.

Summary:
The judgment by the High Court of Punjab and Haryana pertains to VAT appeals u/s 36(1) of the Act against the Tribunal's order on purchase tax on paddy in rice procurement prices for specific crop years. The questions of law raised include the interpretation of levy orders and notifications for different crop years regarding the inclusion of purchase tax on paddy in rice prices. The appellant, a rice mill owner, was required to deposit purchase tax collected from the sale of rice to the Government exchequer.

The Tribunal concluded that the procurement price of rice by Government agencies for the 1998-99 and 1999-2000 crop years included payment of purchase tax on paddy. The Tribunal emphasized that retaining such tax amounts would lead to impermissible enrichment. A comparison of the language in the orders for both crop years indicated that the procurement price of rice was exclusive of taxes in one case and inclusive of purchase tax on paddy in the other. The notifications clearly outlined the tax incidences differently for each crop year.

The Court found that the notifications conveyed the same tax incidences in varying language, with one being inclusive of purchase tax on paddy and the other being exclusive of taxes at the rice stage. As no substantial question of law was identified in the appeals, the Court dismissed the case.

Overall, the judgment addresses the proper interpretation of tax laws concerning purchase tax on paddy in the context of rice procurement prices for different crop years, emphasizing consistency in tax treatment and compliance with legal requirements.