Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2014 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 820 - HC - VAT and Sales TaxReassessment - Input Tax Credit (ITC) - sale of material to 100% EOU and SEZ units - Assessee claims that once the petitioner's Company purchases raw material for manufacture of craft paper and sells the same to 100% export oriented unit as well as dealers in the special economic zone it is squarely covered under Section 13(1)(a) of the Act and it had rightly claimed the ITC to the extent of tax paid by it in purchase of raw materials - Held that:- The Section 29(7) relates to assessment of tax of turnover which has escaped from assessment. Sub-clause 7 of Section 29 provides that the Commissioner on his own or on the basis of reasons recorded by the Assessing Authority can authorize the Assessing Authority for reassessment within a period of 8 years after expiry of assessment year. The provision requires recording of reasons by the Commissioner. The reason has been recorded by the Commissioner in the impugned order which is already quoted herein above. Therefore to argue that the impugned order suffers from illegality of having no reasons therein cannot be accepted. From the perusal of the orders passed by the Assessing Authority, First Appellate Authority and the Second Appellate Authority it is quite apparent that the reason given in the impugned order for reassessment have not been considered in any of those orders to the effect that sale was to units established in the special economic zone and could not be given any ITC under Section 13(7) of the Act whereas the petitioner has claimed it. The provisions of Section 29(7) of the Act squarely applied to the facts and circumstances of the present case since assessment of tax of turnover had escaped assessment in the orders passed by the Assessing Authority the First Appellate Authority as also the Second Appellate Authority. Therefore, the fact that the order of the Second Appellate Authority was not challenged by the department or the petitioner and that it attained finality would not be a bar for the Authority to exercise its jurisdiction under Section 29(7) of the Act. - Decided against assessee.
|