2025 (1) TMI 1559 - SCH - VAT / Sales Tax

Applicability of Notification dated 10-8-2017 is applicable to all industries - HELD THAT - There are no error not to speak of any error of law in the impugned order passed by the High Court. SLP dismissed.

Summary

The Supreme Court of India dismissed the Special Leave Petition filed by the Revenue challenging the Allahabad High Court's order dated 2-8-2024 in Sales/Trade Tax Revision No.21 of 2021. The High Court had allowed the Respondent's revision application, holding that the Notification dated 10-8-2017 granting concessional tax rates applies to all industrial units, including sugar manufacturing units, notwithstanding the separate benefits under Notification dated 7-12-2019.The High Court reasoned that: - The benefit under Notification 7-12-2019 is confined to sugar manufacturers for transportation of sugarcane, whereas Notification 10-8-2017 broadly grants concessional tax rates to all industrial units manufacturing taxable goods.- There is no exclusionary clause in Notification 10-8-2017 barring sugar units already benefiting under the 2019 Notification.- Had the government intended to restrict the 2017 Notification's benefit for sugar units, it would have explicitly stated so.- The Commissioner of Commercial Tax and the Tribunal erred by limiting the 2017 Notification's applicability to sugar manufacturing units only.The Supreme Court concurred with the High Court's interpretation, finding no error of law in the impugned order, and held that the Respondent was entitled to purchase diesel at the concessional tax rate under Notification 10-8-2017. The Special Leave Petition was dismissed accordingly.