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2014 (3) TMI 739 - SC - VAT and Sales TaxAssessment of sales tax – Chargeability of electromagnetic waves or radio frequency - Whether it was open to the AO to assess sales tax by including charges pertaining to electromagnetic waves or radio frequency? - Held that:- Judgment in BHARAT SANCHAR NIGAM LTD. (BSNL) Versus UNION OF INDIA [2006 (3) TMI 1 - Supreme court] followed - It was not open to the AO to assess the appellant to sales tax by including charges pertaining to electromagnetic waves or radio frequency - Yet, in terms of the decision in the earlier Judgment, the said component was taken into consideration for raising the demand under reference - The earlier assessment, out of which the instant proceedings have arisen, was partly unjustified - The Authority was only justified in raising a demand based on the rental collected by the appellant whilst rendering services, as also charges collected for the equipment supplied to consumers – It is just and appropriate to set aside the proceedings initiated by the Sales Tax Authorities and require the Assessing Authority to re-determine the sales tax in the matter - The entire proceedings initiated against the appellant are set aside, with liberty to the Assessing Officer to re-compute the sales tax and raise a demand thereon – Decided in favour of assessee.
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