Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2015 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (3) TMI 1002 - HC - VAT and Sales TaxTaxability of molasses - ex-parte order - it was submitted that entire proceedings against the assessee were held ex-parte and that no notices had been served upon the assessee, since the Unit had been taken over by the Receiver under the orders of the Court dated 18.9.2009 and the possession thereof has also been handed over to the Bank on 3.11.2012 - Further submission that interest on the amount of admitted tax had already been deposited by the assessee inspite of financial hardship being faced by the Unit and therefore in view of the bonafide conduct of the assessee no penalty should have been imposed under section 54(1) and its sub sections of the Act, 2008. Held that:- Orders cannot be said to be ex-parte as from the record it is established that the notices were adequately served upon the Unit. However, what is not clear is whether the notices were served upon the assessee or whether they were served upon the Receiver and what would be the effect, once the Unit had been taken over by the Receiver on 18.9.2009. These questions have not been decided by the Tribunal while justifying the imposition of penalty upon the assessee. The Tribunal has also not taken into consideration the question as to whether molasses would be taxable or not in view of the judgment of the Court in the case of SAF Yeast Company Pvt. Ltd. (2008 (10) TMI 583 - ALLAHABAD HIGH COURT) as well as in the case of D.S. M. Group of Industries (2002 (2) TMI 1310 - ALLAHABAD HIGH COURT). - Order of Tribunal is not sustainable - Matter remanded back - Decided in favour of assessee.
|