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2014 (9) TMI 227 - HC - VAT and Sales TaxTaxes on the "access charges" received by the petitioners from railway authorities - provisional attachment order - petitioners' liability to pay sales tax - Held that:- where the petitioners have approached this court when the sales tax authorities have merely issued a notice why a certain tax should not be collected. The petitioners have full liberty to produce all materials at their command and raise all legal contentions to canvas that they are not exigible to sales tax in view of the nature of the contract and execution of work done by them under such contract. The sales tax authorities are bound to take into consideration and take a view and only thereafter, would be able to frame any assessment even if ultimately the authorities rule against the petitioners. In such a case against the assessment first appeal would be available before the Departmental appellate authority and thereafter before the Sales Tax Tribunal. The Commissioner and the Tribunal also have revisional powers. When such elaborate machinery of appeals and revisions are provided under the Gujarat Sales Tax Act and its successor VAT Act, we are not inclined to examine these questions of complex factual and legal aspects in the present petition and thereby give a complete go-bye to such machinery under the Act. We have also noticed the statutory provisions contained in the Gujarat Sales Tax Act as well as the VAT Act which provide for such appeals and also for revision at the hands of the Commissioner either suo motu or on an application made by the aggrieved party. Under section 45 of the VAT Act, such order of attachment can have a maximum life of one year. Such period of one year has passed long back. In the meantime, there was no stay against the assessing authority from proceeding further with the assessment. This court in the interim order dated November 29, 2006 only prevented the authority from passing the final order without the permission of the court but permitted to proceed further with the assessment. No such permission was sought. It appears that the assessment is not yet undertaken in full earnest. No further hearing took place after the court's interim order. The court had stayed the attachment subject to the petitioners' depositing a sum of ₹ 1,92,00,000 before this court. It is stated that such amount was deposited. In the last part of the interim order dated November 29, 2006, the court had provided that if the petitioners receive any further access charges, they shall deposit the tax at the rate of 12.5 per cent on that amount with the registry of this court till further orders. The petitioners have been depositing such periodic amounts also. Attachment order cannot survive and it has in any case outlived its life well beyond the statutory period envisaged under section 45 of the VAT Act, such attachment order is therefore, quashed - Decided in favour of assessee.
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