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2016 (9) TMI 355 - HC - VAT and Sales TaxTaxability - Indian Made Foreign Liquor – spirit – sold outside the state - benefit by virtue of entry No.18 to Schedule I of the Commercial Tax Act – exemption from payment of Commercial Tax and Central Sales Tax on the IMFL – Held that: - it is clear that to avoid double taxation in the matter of payment of excise duty on IMFL manufactured in Madhya Pradesh, Rule 12 has been framed, so that the manufacture is required to pay excise duty only once, i.e. either in the State of M.P. or in the State where it is exported. The intention of the rule maker is that the tax is paid only once. It is held that it becomes a tax free good and as the words used in the entries are "goods on which duty may be levied under the Excise Act", this would and could only mean that duty could be levied on the goods in question but the State Government thought it appropriate not to levy duty and once it is a good on which duty could be levied the exemption has to be granted – exemption available on IMFL. Statutory remedy of appeal – maintainability – Held that: - it is well settled principle of law that if any action is found to be contrary to law or unsustainable, then relegating a party to take recourse to the alternate remedy is not necessary. The case relied upon here is Paradip Port Trust Vs. Sales Tax Officer and other [1998 (3) TMI 585 - SUPREME COURT OF INDIA] – there is no reason to relegate the petitioners to take recourse to the alternate remedy available of filing appeal, once it is found that imposition of tax under the Commercial Tax Act/ VAT Act is unsustainable. Power to reopen reassessment - Re-assessment proceedings in accordance with law? – Held that: - once it is found that the imposition of duty is itself unsustainable it is not necessary to go into various other questions canvassed at the time of hearing including the power to reopen the assessment, the limitation for reopening assessment, non fulfillment of conditions statutory in nature etc – petition allowed – decided in favor of petitioner.
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