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2016 (6) TMI 503 - HC - VAT and Sales TaxExigibility of output tax - works contract or pure service contract - running Photo Studios - business of processing and supplying of photographs, photo prints and photo negatives - consideration of giving of input tax credit admissible against the output tax liability - Held that:- the question of liability to pay tax under the provisions of VAT Act, 2003 has been determined by the Hon'ble Supreme Court finally in the cases of the assessees only now on 30th January, 2015. If the claim for input tax credit and other deductions from the gross turn over on account of labour charges, etc., could not be made by them during the assessment proceedings which took place while this litigation was pending before the Hon'ble Supreme Court, the assessees cannot be non-suited to make such claim now, if otherwise it is admissible in accordance with the provisions of law. The impugned orders passed by the Assessing Authority do not reflect any such consideration by the Assessing Authority either on the basis of such claims made before the Assessing Authority or not. Therefore, while the levy of output tax is sustainable on the said activity now held to be a 'works contract' by the Hon'ble Supreme Court, the computation of net tax liability under the provisions of the VAT Act, 2003 has to be done afresh by the Assessing Authority, in accordance with the provisions of the VAT Act, 2003. The different claims of input tax credit, deduction of labour charges, franchise charge, exemption from Entry Tax on the purchases of materials, etc., require determination of questions of fact based on relevant evidence, returns and claims made or to be made by the petitioner. Therefore, the cases necessarily call for a remand of the proceedings to the Assessing Authority himself, allowing the petitioner to make such claims based on relevant evidence in accordance with law and the respondent Assessing Authority is expected to decide such claims of the petitioner on merits in accordance with law by passing a fresh speaking assessment orders in pursuance of the present remand of case made by this Court. - Petitions allowed by way of remend
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