Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2018 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 600 - HC - VAT and Sales TaxImposition/liability of interest under Section 8(1) of the U.P. Sales Tax Act, 1948 - purchase of Opium - Section 3-AAAA of the Act. Held that:- Admittedly the revisionist is a Union of India undertaking and it deals in procurement, distribution as well as export of Opium its derivatives and life savings medicines and exportation thereof - The admitted fact that the assessing authority has passed the assessment orders for all the assessment year in question in the year 1979 and thereafter. No tax was admitted by the revisionist Union of India as it disputed the applicability of the provisions of the Act on the ground that the revisionist is not a dealer, is not liable to tax in view of Article 285 of the Constitution of India and that the procurement of Opium and sales and manufactured product is not liable to tax. The facts in the present case prima facie establishes that in fact the revisionist has never admitted any liability of purchase tax. It was not the tax which was admittedly payable by the revisionist - the revisionist in fact has agitated its claim before the assessing authority by filing an application under Section 22 as such has disputed its liability from very inspection/binning. In this view of the matter, the same cannot be treated to be "admitted tax" or tax "admittedly payable" for the purpose of Section 8(1) of the Act. There was a bona fide dispute raised by the revisionist regarding liability for tax thereon, thus, it cannot be said to be its admitted taxable turnover and, therefore, there is no liability for payment of interest under Section 8(1) of the Act - The revision petitions are allowed and the assessing authority is directed to redetermine the interest in view of the provisions of Section 8(1-A) read with section 8(1-B) of the Act. Revision petition allowed by way of remand.
|