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2015 (8) TMI 1355 - HC - VAT and Sales TaxWorks contract - U.P. trade tax - composition fee - Circular provided for composition of trade tax if the contractor pays the amount representing one per cent of the total contract receipts - Circular was amended by Notification dated 28.10.2003. Therein, it essentially provided that, if the import of raw material goes more than five per cent of the contract amount, then, such contractor will have an option to deposit three per cent composition fee instead of one per cent and, in that situation, the tax assessment provision will not be applicable - whether the assessee is required to deposit the amount at the rate of three per cent and pay interest? Held that: - even if the inter-state purchase of the raw material made by the revisionist exceeded five per cent, if the revisionist exercised the option to pay three per cent composition fee, then, that would put an end his tax liability for the period - Without there being tax liability, there cannot be a question of levying interest. Therefore, in place of the tax, which he would have had to pay under the earlier scheme, in view of his inter-state purchase having exceeded five per cent, as he had opted to pay three per cent and which he could possibly do only after 28.10.2003, it cannot be mulcted with interest for the period prior to 28.10.2003. Revision allowed - decided in favor of revisionist.
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