Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2014 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 794 - HC - VAT and Sales TaxExemption from trade tax - Whether 'Cotton Coated Fabric' i.e. 'Textile Fabrics', impregnated, coated, covered or laminated' by PVC is the same thing as PVC fabric for the purpose of taxability under the Act, 1948 - Held that:- A perusal of the said notification indicates that cotton fabrics of all varieties manufactured on power loom have been granted exemption from tax. However, certain items have been excluded. One of the excluded item is PVC/HDPE fabrics - it is relevant to refer to the provisions of Act, 1957 which was enacted by the Parliament to provide for the levy and collection of additional duties of excise on certain goods and for the distribution of a part of the net proceeds thereof among the States - different varieties of "cotton fabrics" are exempted from the tax under the Act, 1948. Textile fabrics impregnated, coated covered or laminated with PVC (polyvinyl chloride) are treated as textile fabric. Even if article is covered by an item which has been excluded, but its species is again covered in an item included in the exemption, the exemption shall not be denied to the species of the item included - although the PVC/H.D.P.E fabrics are excluded, but cotton coated fabrics of all varieties having been included, if the item manufactured by the petitioner is termed as cotton coated fabric, it is exempted from payment of Tax under Act, 1948. Whether the Additional Commissioner has rightly granted permission under Section 21 (2) of the Act, 1948 and as to when the re-assessment proceedings can be initiated under Section 21(2) of the Act, 1948 has been the subject matter of consideration before the Apex Court and this Court in large number of cases - Held that:- There cannot be any dispute to the proposition as laid down in the above two cases. In the proposal submitted by the Assessing Officer, no other fact except the judgment of the learned Single Judge in M/s Laxmi Leather Cloth Industries (2007 (10) TMI 577 - ALLAHABAD HIGH COURT) was relied on. The Additional Commissioner, himself has observed in its order dated 25/11/2011 that the question as to whether the tax has escaped assessment is to be examined by the Assessing Officer for determining as to whether the "Cotton Coated Fabric" manufactured by the petitioner is a PVC fabric or not. Thus, no belief has been formed by the Additional Commissioner that the tax has escaped assessment and the proceedings of re-assessment has been initiated merely on doubt which is not permissible. - "Cotton Coated Fabrics" are different from PVC fabrics and the judgment of the learned Single Judge in M/s Laxmi Leather Cloth Industries (supra) being not attracted in the present case, we are of the view that the re-assessment proceedings against the petitioner cannot be allowed to continue - Decided in favour of assessee.
|