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2015 (5) TMI 1067 - HC - VAT and Sales TaxAssessment under the Luxury Tax Act - banquet sales bills - Rule 3C brought into rules as per SRO 566/2006 dated 28/07/2006 which prescribes procedure for computation of rent or other charges realized for hall, auditorium, Kalyanamandapam etc. where such rent or other charges are not separately ascertainable - whether Rule 3C of the Rules which was introduced only subsequent to the year of assessment, i.e. 2005-06, Rule 3C procedure can be relied on for determination of luxury tax? - Held that: - Merely because there is no definite procedure as contemplated under Rule 3C for determination of luxury tax in the year 2005, it does not divest the petitioner from any liability to pay luxury tax in the light of non obstante clause under Section 4(2) of the Act. Though, Rule 3C would not apply, its yardstick can be applied to arrive at as a best judgment - no infirmity with the calculation of the luxury tax. Whether the petitioner is entitled for credit of the payment already made for the entire amount towards sales tax? - since the petitioner has already paid VAT on full value on banquet sales, excess VAT paid has to be set off against luxury tax payable. Fresh assessment shall be made after giving credit to the excess VAT paid. Petition disposed off - decided in favor of petitioner.
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