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2013 (3) TMI 444 - HC - VAT and Sales TaxComposition scheme under section 6 of the U.P. VAT Act - W.e.f. 1st of January, 2008 the U.P. Trade Tax Act has been repealed and simultaneously the U.P. VAT Act, 2008 was enacted - The petitioner did not apply for composition under the new Act i.e. the U.P. VAT Act, 2008 as after the 1st of January, 2008 no new contract was awarded and the existing contracts for electrical works were in progress - petitioner ultimately assessed to tax for the AY 2008-2009 under the U.P. VAT Act at the rate of 6 per cent on the goods brought in the State of U.P. exceeding the value more than 5 per cent of total receipts of the payment - assessee contested against tax levy as there was no such condition restricting the import of goods up to 5 per cent of the contract amount in U.P. VAT Tax Act - Held that:- Admittedly, the petitioner has not opted to pay the composition fee under the new scheme framed under section 6 of the U.P. VAT Act for the subsequent years i.e. 2008-2009. The impugned assessment order is in respect to the Assessment Year 2008-2009 and it shall continue to be governed by the scheme, as it then existed, framed under section 7-D of the U.P. Trade Tax Act. The Assessing Authority, thus, could levy and demand the tax from the petitioner as per the terms of the scheme under which the petitioner had opted and not under the new scheme. The contention of the petitioner that under the old scheme the compounding fee was 2% which could not have been enhanced under the U.P. VAT Act to 4% was repelled. There the petitioners had applied under section 6 of the U.P. VAT Act which is no so in the case on hand. Thus the order passed by the respondent no.3 in so far as it demands the composition amount/fees at the rate of 6 per cent under the Composition Scheme of 2008 issued under the U.P. VAT Act, 2008 is hereby quashed in favour of assessee.
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