2012 (3) TMI 385 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to payment of registration fees on supply of coal; Interpretation of registration requirements under the U.P. Value Added Tax Act, 2008.

Summary:

Challenge to payment of registration fees on supply of coal:
The petitioner, a registered dealer under the U.P. Value Added Tax Act, 2008, contested the demand for registration fees by forest authorities of State of U.P. for each truck of coal supplied. Citing a previous court decision, it was argued that no registration fees should be charged for the movement of coal within the State of U.P. The court agreed with this argument, stating that the insistence for registration and charging of fees exceeded the authority granted under the Indian Forest Act, 1927 and the Rules of 1978. The court allowed the writ petition, directing that if any registration fee was collected, it should be returned to the petitioners. The petitioners were, however, still required to obtain transit passes and pay transit fees in accordance with the U.P. Transit of Timber and other Forest Produce Rules, 1978.

Interpretation of registration requirements under the U.P. Value Added Tax Act, 2008:
The court, following a previous decision, ruled that the petitioner was not obligated to pay registration fees or obtain registration for the movement of coal within the State of U.P. The Additional Chief Standing Counsel failed to provide any reasons to deviate from the precedent set by the earlier judgment. Consequently, the court allowed the writ petition in line with the directions given in the previous case of Akanksha Enterprises.