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2016 (4) TMI 967 - HC - VAT and Sales TaxRe-assessment of returns - Chillers imported outside the country - Commitment of offence in regard to stipulation in contract that chillers had to be purchased from Malaysia - Held that:- an officer of the rank of Commissioner is totally unaware of the provisions of the Sales Tax laws. The State Government has no legal competence to levy tax on goods which are imported from outside the State. It also has no competence to levy tax on goods imported from outside the country. The learned Commissioner has held that since the goods were imported from Malaysia for which the dealer was not authorized and, therefore, the dealer has committed an offence. we fail to understand this logic of the Commissioner of Taxes. The contract was entered into between the Airport Authority of India and Voltas. In the said contract there was a stipulation that these chillers had to be purchased from Malaysia. Even otherwise any dealer is not duty bound to buy goods from only within the State. He can buy goods from outside the State and bring them within the State or can import them into the country in accordance with law. If he has not smuggled in the goods, he has not committed any offence. Whether the assessee had charged 20% tax over and above the contract value - Works Contract - Held that:- the state has failed to produce any evidence in regard to its conclusion that the dealer had charged 20% sales tax over and above the contract value. This leaves no manner of doubt that the contract value was inclusive of all taxes and duties and the stand of the Revenue in this regard is totally false. The entire exercise of reassessment was started only with a view to delay the re-payment of the sum of ₹ 14,65,591/-. It is indeed shocking that a State should behave in such a manner. The contract was available with the Revenue and yet it refused to read contract. The Commissioner of Taxes also came up with a fanciful argument that the assessee had committed an offence by importing chillers from Malaysia. Therefore, this is a fit case where exemplary costs should be imposed. - Petition disposed of
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