Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + SC VAT and Sales Tax - 2014 (1) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 724 - SC - VAT and Sales TaxPeriod of liability - Whether the assessee is entitled for an exemption from payment of tax for a period of six years or for a period of five years in view of the location of the industry - Held that:- if an industrial unit has obtained an eligibility certificate for exemption from trade tax under the exemption scheme which was in force upto 31.03.1990 and no act of forgery or cheating has been committed in obtaining the certificate or if no conditions of the certificate is violated, then even if the Commissioner has cancelled the certificate in exercise of his powers under Section 4A (3) of the Act, then also the outstanding amount prior to the date of cancellation or modification would be remitted unless the unit has not realized the tax from its customers. The aforesaid circular is binding on the authorities under the Act as noticed by a Constitution Bench of this Court in the case of Collector of Central Excise, Vadodra vs. Dhiren Chemical Industries [2001 (12) TMI 3 - SUPREME COURT OF INDIA] - State Government in exercise of its powers has issued a circular which, in our opinion, is binding on the assessing authority. If that is so even after cancellation of the eligibility certificate in the case of the respondent unit, the said unit can certainly claim remission from payment of tax provided it had not realized the same from its customers - assessing authority in fact, had passed an order granting remission of the tax since the assessee had not collected tax from its customers - Decided against Revenue.
|