2022 (12) TMI 560 - HC - CST, VAT & Sales Tax

Claim of exemption of penultimate sale in course of export - production of ‘H’ Forms and export documents including Bill of Lading in respect of claim under Section 5(3) and 5(4) of the CST Act - Validity of order of remand for levy of penalty - there was no appeal or cross objection by the State - HELD THAT:- mere non-production of agreement entered into between the Indian Exporter and the Foreign Buyer would not invalidate the claim of the petitioner-penultimate seller for exemption under Section 5(3) of the CST Act. Furthermore, the authorities have not complained that the petitioner has not complied with the terms of sub-section (4) of Section 5. The disallowance of claim of the petitioner under Section 5(3) of the CST Act has been made by the Assessing Authority and confirmed by the Appellate Authority and the Odisha Sales Tax Tribunal was on account of non-production of copy of agreement between the Indian Exporter and the Foreign Buyer. - Decided in favor of assessee.

Levy of penalty - HELD THAT:- In the First Appellate stage, the petitioner had been granted relief with respect to penalty for non-submission of statutory forms. There was neither cross-appeal nor cross-objection by the Revenue. It deserves to be noted, therefore, that in the appeal of the petitioner-dealer, the Odisha Sales Tax Tribunal was not legally correct to grant relief to the opponent-State of Odisha by remanding the matter to the Assessing Authority to take action as deemed proper “as per requirement of statute” qua matter of imposition of penalty. - Decided in favor of Assessee.