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2012 (1) TMI 141 - HC - VAT and Sales TaxRate of sales tax on motor tyres/tubes - whether State authorities can levy tax from retrospective date? Held that:- The written statement filed by the respondents does not spell out any justification for enforcing the notification, annexure P3, retrospectively from August 20, 1992 instead of April 1, 1992. The respondents vide notification dated November 9, 1990 had amended the notification dated December 2, 1982 reducing the rate from 12 paise to 9 paise in a rupee on motor tyres and tubes up to March 31, 1992 and vide notification dated December 28, 1990, the rate of sales tax on tractor tyres and tubes was reduced from eight per cent to six per cent up to March 31, 1992, which was later on continued up to March 31, 1994 vide notification dated August 20, 1992 (annexure P3). However, vide notification dated December 1, 1992, the rate of nine paise in a rupee on motor tyres and tubes and six paise in a rupee on tractor tyres and tubes has been made effective from August 20, 1992 instead of April 1, 1992 without giving any reasonable ground for adopting such date. Further, the petitioner has refunded ₹ 10,79,659 on the basis of notification, annexure P3, which fact has not been specifically denied by the respondents in the reply. The notification, annexure P5, thus, cannot be held to be valid and is hereby quashed. The respondents cannot be held entitled to charge sales tax at 12 paise in a rupee on motor tyres and tubes and at eight paise in a rupee on tractor tyres and tubes from April 1, 1992 to August 20, 1992. W.P. allowed. It is held that the petitioners shall be liable to pay sales tax for the period from April 1, 1992 to August 20, 1992, in accordance with the notification, annexure P3 and the assessing authority shall determine the liability, if any, accordingly.
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