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2021 (3) TMI 1265 - HC - VAT and Sales TaxValidity of re-computation of sales tax payable - assessment years (AYs) starting from 1999-2000 till 2004-05 - time limitation - levy of interest - HELD THAT:- There was no other basis for accepting the plea of the assessee for the AYs in question. That very basis of the orders passed by this Court has been rendered non-existent by the judgment of the Supreme Court in Bajaj Auto Ltd. [2016 (11) TMI 31 - SUPREME COURT] setting aside the order dated 5th January, 2007 of this Court. The aforementioned declaration of the law by the Supreme Court is binding on all the authorities in terms of Article 141 of the Constitution - Consequently, the impugned orders that have been passed, re-computing the tax payable to give effect to the judgment of the Supreme Court, which the authorities were bound to do, cannot be termed illegal. Time Limitation - HELD THAT:- The decision of the Supreme Court was rendered on 28th October, 2016, the re-computation orders having passed not very long thereafter, in December 2017, and in the absence of any specific period of limitation prescribed for re-computation, it cannot be said that the said orders are time barred. Levy of interest - HELD THAT:- Since the legal position got clarified by the Supreme Court only on 28th October 2016, the Petitioner is justified in contending, on the strength of the judgment of the Supreme Court in Food Corporation of India v. State of Haryana, [2000 (2) TMI 735 - SUPREME COURT], that such interest is payable only for the period subsequent to the judgment of the Supreme Court and not prior thereto - the impugned demand notices are modified only to the extent that the interest on the differential tax amount will be payable by the Petitioner for the period subsequent to the judgment of the Supreme Court i.e. 28th October 2016, till the date of payment. The Deputy Commissioner of Sales Tax (Opposite Party No.1) will now issue fresh orders re-computing the amount payable on the basis of the modification not later than 19th April, 2021 - petition disposed off.
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