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2015 (9) TMI 256 - HC - VAT and Sales TaxValidity of Compounding Scheme Petitioners applied for compounding scheme for session 2007-08 & 2008-09, which was rejected by assessing authority on ground that regular assessment orders had already been passed for session 2007-08 Whether petitions challenging constitutionality validity of compounding scheme dated 9.6.2009 for season 1.1.2008 to 30.9.2008 are maintainable Held that:- impugned compounding scheme neither violates any fundamental or constitutional rights of petitioners nor it lacks legislative competence nor it is violative of any of provisions of Act Under said circumstances, no unconstitutionality in compounding scheme is found Relief to declare compounding scheme to be ultra vires, is not entertainable inasmuch as on one hand petitioners have prayed for declaring scheme to be ultra vires and on other hand they prayed that benefit of scheme be provided to them for part of period Well settled that Courts, in exercise of their power of judicial review did not ordinarily interfere with policy decisions of executive unless policy can be faulted on account of malafide, unreasonableness, arbitrariness or unfairness etc Therefore relief sought by petitioners to declare aforesaid compounding scheme as ultra vires, hereby rejected. Compounding Scheme Applicability for part of session Whether compounding applications for part of season from 1.4.2008 to 30.9.2008 may be accepted despite fact that compounding under Section 6 of UP VAT Act was offered for fixed period and for fixed lump sum amount Held that:- scheme does not provide for computation of lump sum amount for part of season which may be accepted by assessing authority Settled law that in interpreting taxing statute, equitable consideration are entirely out of place nor can taxing statute be interpreted on any assumptions or presumptions Thus it is not open for assessing authority either to bifurcate period of season or lump sum amount under scheme unless assessing authority is permitted to do so under scheme itself In absence of any such direction or power, assessing authority committed no error in rejecting compounding application Therefore compounding scheme is valid and petitioners were not entitled to apply for compounding Decided against Petitioners.
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