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2019 (12) TMI 224 - HC - VAT and Sales TaxRate of tax - sale of coal without Form-C - Whether tribunal was justified in law to impose tax @ 10 % on sale of coal against the provisions of section 8 (2) of CST Act? - HELD THAT:- Bare perusal of Sections clearly shows that the declared goods sold without Form -C can be subjected to tax twice as the rate of tax applicable in the appropriate State. Section 14 (ia) of the Act also declared coal as a special importance goods i.e. coal is a declared goods - By Notification- TIF-2-2372/XI-9 (251)/97-UP Act 15/48-order 98, dated 23.11.1998 the State of Uttar Pradesh has prescribed the rate of tax on the sale of coal @ 4 %. The aforesaid notification has been amended from time to time but the rate of tax on the sale of coal has remained unchanged. The records reveals that the dispute in relation to sale of coal has admittedly been made without requisite Form -C as prescribed under the Act and it is not disputed that the coal is a declared commodity under Section 14 (ia) of the Act and rate of tax as per the above notification is only @ 4 % which is leviable in the State of Uttar Pradesh - the tax on the sale of coal within the said limit was @ 4 %. In view of Section 8 (2) (a) of the Act, sale of coal made by the revisionist without Form-C can be taxed at twice as the rate applicable in State i.e. @ 4 +4 =8 % and not above that. The Tribunal was not justified in imposing the tax on the sale of coal without Form-C @ 10 % treating the same under Section 8 (2-b) as undeclared goods - question of law is answered accordingly in favour of the assessee and against the department - revision allowed.
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