2007 (5) TMI 604 - HC - VAT and Sales Tax

Levy of tax - whether tax can be levied only on actual sale consideration and not assessable value? - Held that - The Deputy Commissioner (Appeals) rightly held that the tax is leviable on actual sale consideration and not on assessable value of goods nor it can be based only on the sale consideration which might have been accepted by the Excise Department in the proceedings under the Excise Act. The appellate authority also held that the assessing authority merely on the basis of price shown in the excise proceedings levied the tax whereas there is no material available on the record on the basis of which it can be said that the assessee has disclosed wrong consideration in his returns - sales tax revision dismissed.

Summary

The High Court of Rajasthan upheld the Deputy Commissioner (Appeals) order that tax should be levied on actual sale consideration, not on assessable value. The appellate authority found no error in the orders passed by the Tax Board and Deputy Commissioner (Appeals), dismissing the sales tax revision.