Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s. Classic Engineering Co., M/s. Jakson & Co., Nand Kishore & Co., Prem Oils, D.D. Sales Corporation, Murlidhar Vijay Kumar, Almex India Pvt Ltd Versus The Commissioner of Sales Tax

Benefit of Form ST 35 for the sales made to buyers outside Delhi, which has resulted in enhancement of turnover - Levy of penalty & interest u/s 56 - Reopening of assessment - Held that:- No indication that the amended Form also stood notified in the gazette, what is similar to both cases is that the Department failed to print the amended forms for issuance to the dealers. As has been discussed hereinbefore, a very detailed procedure has been prescribed under Rule 8 of the DST Rules for issuance .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rm ST-37A as it turned out that the amended Forms were issued only with effect from 27th June 2000. Therefore, even if the Assessees had approached their ward authorities to get the Form ST-8 in its amended version (which had replaced Form ST-37A) such amended Forms would in fact have not been available. There was not even any press note, circular or notification issued to the dealers about the availability of such amended ST-8 Forms.

This was not a case of making a false declaration. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. - Clause 7A refers to Rule 23A(2) which provides that where a dealer purchases goods on the strength of the registration certificate issued under Rule 16 and against Form ST-35(1) but utilises such goods not by way of sale but for a purpose other than that mentioned in Rule 11(XXXIVA) then the purchase price would be included in his taxable turnover. However, Rule 23A(2) itself is not applicable because the condition laid down for its applicability did not exist. In other words, with Form ST-3 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sion of the Supreme Court in J.K. Synthetics Ltd and Birla Cement Works v. Commercial Taxes Officer and State of Rajasthan [1994 (5) TMI 233 - SUPREME COURT] which holds that if the original assessment is accepted and the dealer has paid tax in terms of that return, the levy of interest will not be justified. The levy of penalty was in any event not justified. The imposition of penalty is not automatic even assuming that the reassessment was justified. The fact that there was a dissenting opinio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

inction between the reopening of an assessment under Section 24 of the DST Act and the exercise of revisionary powers by a superior officer under Section 46 of the Act. Thus a Commissioner could form the opinion that the order of an assessing authority is prejudicial to the interests of the Department. In other words, Section 24 cannot substitute for the power exercisable under Section 46 of the Act.

A mistake in the original assessment will not by itself constitute a justification f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hority recording satisfaction that there existed grounds for reopening the assessment within the meaning of Section 24 of the DST Act. This again cannot be a mechanical reproduction of the provision. If there is no such recording of satisfaction by the assessing authority, the inevitable result is invalidation of the entire reassessment proceedings. - Decided in favour of assessee, - ST.APPL. 1/2013, ST.APPL. 3/2013, ST.APPL. 4/2013, ST.APPL. 5/2013, ST.APPL. 6/2013, ST.APPL. 17/2013, ST.APPL. 1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

( Tribunal ) arising under similar facts and circumstances. In all these appeals the following substantial question of law arises for consideration and were framed by the order dated 21st August 2013: (i) Whether the majority decision is right in holding that the appellant is not entitled to benefit of Form ST 35 for the sales made to buyers outside Delhi, which has resulted in enhancement of turnover 2. In STA Nos. 1, 3, 17, 18 and 24 of 2013 the following further question was framed for consid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ms of the Delhi Sales Act, 1975 ( DST Act ). They are engaged in the business of purchase and resale of taxable goods as a dealer under the DST Act as well as the Central Sales Tax Act, 1956 ( CST Act ). Background facts 5. Illustratively, the facts concerning Classic Engineering Company (CEC), the Appellant in STA No. 1 of 2013, are narrated. CEC was granted an authorisation certificate with effect from 19th September 1992 in Form ST-37 for purchase of first point goods without payment of tax b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as not purchased the goods from any of the above two dealers, when such dealer sells such goods for the first time in Delhi; (iv) in the case of a registered dealer who purchased the first point goods on the declaration of Form ST-35, which has been referred to in Clause (xvii) of Rule 11 of the Delhi Sales Tax Rules, 1975 ( DST Rules ) for any of the purposes mentioned in sub-clause 1 of Clause 17 but are not so utilised by him, when any such dealer sells any such goods for the first time in De .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

1999, the legal position was that on the strength of the authorisation certificate in Form ST-37, the first point goods could be purchased by the authorised dealer when intended: (i) for use as a raw material in the manufacture in Delhi of goods (other than goods specified in the Third Schedule to the DST Act or newspaper) for sale in the manner specified in item (A) of Section 4(2)(a)(v); (ii) for sale in the course of inter-state trade or commerce or in the course of exports outside India in t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n Form-36A for grant of authorisation in Form ST-37A. 9. At this stage a brief explanation is called for as regards extended first point seller . 'First point' means that the goods are taxed in the hands of the first seller in Delhi, i.e., in the hands of the importer who imports goods from outside Delhi and sells the same for the first time in Delhi or in the hands of the manufacturer who manufactures the goods and sells the same after manufacturing for the first time in Delhi. In case .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ore, should be treated as first sellers. Following this an amendment was made to the DST Act to provide for not treating a stage at which such companies sell to the distributors as first point. It is provided that it is only when the distributors would sell the goods, it would be treated as first sale. The dealers were then known as extended first point sellers who could purchase first point goods from their principals without payment of tax by issuing a declaration in Form ST-35/1. 11. CEC was .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

A)(1) are not to be specified in the registration certificate. A registration certificate itself is issued in Form ST-8. 13. The other fact to be noticed is that it is not as if a dealer can himself simply print the forms namely ST-37 or ST-37A (the authorisation forms) or the declarations in Form ST-35 or ST-35/1. There is a procedure specified under the DST Rules for this purpose. Rule 8 of the DST Rules provides for the authority from whom the declaration form will be obtained. It also provid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

destroyed or stolen, the dealer shall report the fact to the said authority immediately and make an entry thereof in the said register. He shall also furnish in respect of every such form lost, destroyed or stolen, an indemnity bond to the appropriate assessing authority for such sum as the said authority may, having regard to the circumstances of the case, fix. 14. Thus it is seen that Rule 8 provides that the declaration shall be printed under the authority of the Commissioner. It can be obtai .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

15. With effect from 30th September 1999, a change was brought out to Rule 11 (XXXIV) and (XXXIVA) of the DST Rules. The amendment was to restrict the extended first point selling to make sales only inside Delhi. In other words, an extended first point seller could make purchases without payment of tax by furnishing a declaration in the amended Form ST-35/1 that the purpose for which such goods were to be used was only for resale inside Delhi . Simultaneously, Form ST-5, Form ST-36 and Form ST-3 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e net result was that with effect from 30th September 1999, as a result of the amendment to Rule 11 (XXXIVA) and Form ST-35/1, purchases against the amended Form ST-35/1 could not be made for affecting: (a) inter-state sales (b) exports out of India or (c) for use in manufacture of goods for sale outside Delhi. 16. In the case goods sold for a purpose other than for sale in Delhi then the purchase price of such goods was liable to be included in the taxable turnover of the purchasing dealer. 17. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he matter was that the sales tax department continued to treat the said registration as valid and continued to issue Forms ST-1, ST-35 and ST-35/1 on the basis of Forms ST-8, ST-37 and ST-37A in the unamended versions even after 30th September 1999. 18. At this stage it requires to be noticed that Rule 2(g) of the DST Rules defines form to mean a form appended to these Rules which includes Rule 8. The fact of the matter was that no new forms were printed by the sales tax authorities after the am .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

i.e., the form which existed prior to 30th September 1999 and which permitted a dealer to make purchases for making sales in the course of inter-state sales as well as inside Delhi. Therefore it could not be said that the declarations given by the dealer in such unamended forms were false declarations so as to attract the first proviso to Rule 11(XXXIVA). Reassessment proceedings 20. In the case of CEC, its sales tax assessment for the Assessment Year ( AY ) 2001-02 was framed both under the DS .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

inter-state sales they should be taxed by making a reassessment. 22. On the strength of the above instructions, notices were issued under Section 24 of the DST Act to examine whether goods purchased against Form ST-35/1 were sold locally or by way of inter-state sales. These notices were issued on 28th April 2005 under Section 24 of the DST Act. Notices were also issued on 31st March 2007 under Section 56 of the DVAT Act calling upon the dealer to show cause why penalty should not be imposed. 23 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

thority further levied interests in the sum of ₹ 4,99,878 and penalty of ₹ 5,55,420. The total demand created was ₹ 16,10,723. Orders in Appeal 24. Aggrieved by the above order of reassessment, CEC filed an appeal before the Additional Commissioner who by an order dated 2nd June 2009 confirmed the reassessment order dated 19th March 2007. 25. Thereafter an appeal being ST Appeal No. 104/ATVAT/09-10 was filed before the Tribunal. There were three Members of the Tribunal i.e. Mr. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ales Tax (1978) 41 STC 409 (SC) and allowed the appeal. 26. The facts of the other appeals are more or less similar to the case of CEC except as regards the dates of the respective orders of assessment, reassessment and the respective orders of the Additional Commissioner dismissing their appeals. The figures of tax, interest and penalty would also differ. 27. While the first question of law as noted hereinbefore is common to all the appeals, Question 2 concerning levy of penalty and interest is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g in the enhancement of their respective turnovers. 29. To recapitulate, the dealers in these cases do not deny that an amendment took place to Rule 11 (XXXIV) and (XXXIVA) with effect from 30th September 1999. Their case, however, is that with the amended forms not actually being issued to them, they continued filing declarations using the unamended Form ST-35 and ST-35/1. Their position is that for no fault of the Appellants, and on account of the failure of the sales tax authorities to print .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd 13 and Mr. Ruchir Bhatia and Ms. Renu Sehgal, learned counsel for the Appellants in the other appeals submitted as under: (i) The decision of the Supreme Court in Polestar Electronics (P) Ltd. (supra) applies clearly to the facts of the present case. The Forms in terms of the amendments with effect from 30th September 1999 were never printed by the Department. In such event the dealers had to necessarily use the unamended form that was issued by the department and could not have added or subt .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ce the declaration was not in the prescribed form. The consequence could not be that the price of the goods purchased would be included in their taxable turnover. The fact that the substituted forms were never printed was confirmed by the letter dated 22nd December 2009 issued by the Additional Commissioner of Sales Tax under the RTI Act. (iii) Even the newly printed registration certificates under ST-8 were issued to the assessing authority only with effect from 25th June 2009 i.e. after nine m .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f making inter-state sales since the Appellant could not have visualised at the time of purchase whether the goods were going to be sold in Delhi or outside Delhi. Further even at the time of inter-state sales violation could not be said to have taken place since till that point in time the amended Form ST-35/1 was not even printed much less issued. A purchasing dealer can be said to have violated the declarations only when he acts contrary to the condition expressly stated in the declaration. I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nding that in that case the amended Forms were in fact not issued whereas in the present case the amended Forms were also notified in the official gazette and, therefore, it is not as if the dealers were unaware that the forms also stood amended. Reliance was placed on the decision in Modi Spinning Mills (supra). The decision in Polestar Electronics (P) Ltd. 31.1 Since the majority and minority judgments of the Tribunal have referred to the decision in Polestar Electronics (P) Ltd. (supra) that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

m which was prior to 29th September 1973. There was no requirement in terms of the said registration form that the resale of goods or use of such goods as raw materials should be within Delhi. That requirement was brought in by an amendment with effect from 29th March 1973. 31.3 One part of the decision in Polestar Electronics (P) Ltd. (supra) concerned the interpretation of the word resale under the second proviso to Section 5(2)(a)(ii) of the Bengal Act as amended by Finance Act, 1972. It was .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g dealer it would be for the Revenue to show that, in a given case, the goods were utilised by the purchasing dealer for a different purpose, i.e., after having purchased the goods for resale or for use as raw material, they were neither resold nor used as raw material. 31.4 The decision in Polestar Electronics (P) Ltd. (supra) also discussed the effect of the declarations given by the Assessees in the unamended Forms. As in the present case, in the facts of that case, despite the amendment to S .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

31.5. It was noted in Polestar Electronics (P) Ltd. (supra) that although the amendment took effect from 28th May 1972, the amended Forms were not issued till 29th March 1973. As a result, from 28th May 1972 to 29th March 1973 the Form with declaration continued to be the same as before and carried the statement that goods were purchased by the purchasing dealer for use by him as a raw material in the manufacture of goods for sale without any restriction as to the place of manufacture or sale an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the goods for any other purpose if they used the goods as raw materials in manufacture outside Delhi or sold the goods manufactured outside Delhi. Even if they manufactured goods outside Delhi and sold the goods so manufactured outside Delhi, the use by them of the goods purchased would be for the purpose stated in the declarations and it would not be right to say that they utilized the goods for any other purpose. The problem can also be looked at from another point of view and that too yields .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oods must be purchased by the purchasing dealer as being intended for use by him as raw materials in the manufacture in the territory of Delhi of goods for sale inside Delhi . But the declarations given by the assesses being in the unamended form, it would not be possible to say that the goods were purchased by the assesses as being intended for use as raw materials in the manufacture in the territory of Delhi of goods for sale inside Delhi. The condition for the applicability of the second prov .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

had escaped assessment. It was observed by the Supreme Court as under: It is indeed difficult to see how the assesses could be saddled with liability to tax under the second proviso when they have literally complied with the statement of intention expressed in the declarations given by them to the selling dealers. 31.7. The Supreme Court in Polestar Electronics (P) Ltd. (supra) itself distinguished the earlier decision in Modi Spinning Mills (supra). In Modi Spinning Mills (supra), the declarati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

-3 which did not contain the words in the State of Punjab of goods for sale. In those circumstances it was held that the Appellant had violated the declaration given in the amended form because the cotton was sent for the manufacture of goods out of Punjab. Therefore, on the one hand the Assessee violated the declaration given in the amended ST-22 and on the other claimed deduction on the basis of the unamended certificate. Effect of non-availability of the amended forms 32. The Court fails to a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

detailed procedure has been prescribed under Rule 8 of the DST Rules for issuance of the Forms. It is not as if a dealer can simply print out a form and begin using it. The assessing authority has to be satisfied that the purchasing dealer is entitled to such a Form. The Forms are maintained in serial numbers and the assessing authority has to keep a complete record of all the Forms being issued to various dealers. 33. There is no denial by the Department at any stage that they had in fact not .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n light of the above letter, the Court fails to understand that how it can be contended before this Court by learned counsel for the Revenue that the amended Form ST-35/1 was available. Further the contention that at no stage did any of the dealers actually seek the issuance of the Form in terms of Rule 8(3) of the DST Rules was not a contention raised by the Revenue at any stage of the proceedings i.e. before the Assessing Officer, the Appellate Authority or the Tribunal. When asked to point ou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rst time at this stage cannot be accepted. 35. In any event, the fact remains that with the Forms not having been printed and in case of the some of the Appellants the unamended Forms being continued to be issued, the Assessees could not be held to have made any false declaration. The observation of the majority judgment that non-printing of Forms due to administrative reasons was a mere technicality which cannot make the statutory rule redundant overlooks the detailed procedure under the DST Ru .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

stated below are covered by *my/our authorisation No...............dated..........which is valid with effect from .................and are for: *(1) sale by me/us in the course of inter-state trade or commerce in the manner specified in sub-item (2) of item (A) of section 4(2)(a)(v). *(2) sale by me/us in the course of export outside India in the manner specified in sub-item (3) of item (a) of section 4(2)(a)(v). *(3) use by me/us as raw materials in the manner and for the purposes specified in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd his status in Signature Relation to the purchasing dealer ........................................... Name and address of the purchasing dealer. *Strike out the words/expressions not applicable. 37. It has been contended by the Revenue that it is incumbent on the purchasing dealers to strike out those portions of the above Forms which are not applicable in terms of the asterisk marks given in the Form while giving the declaration in the above Form after 30th September 1999. This submission, i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appearing at in relation to asterisks alongside certain options/phrases was held to imply that striking out options within the heads was required to be done. 38. However, as rightly pointed out in the minority judgment, it is only by Circular dated 13th April 2004 issued by the Deputy Commissioner (Forms) that all the STOs, ASTOs were directed to strike out the terms mentioned at Serial Nos. 1, 2 and 3 from Form ST-35 before issuing them to the dealers. This clearly means that the Department in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

-36A. He was issued an authorisation in Form ST-37A on 13th October 1999. After the authorities intended to implement the amended provision, rather than issuing a Form in ST-37A (which had in fact been deleted by the amendment), they could have amended the registration certificate of the Assessee. 39. As rightly pointed out by the Assessees in the present case, on the strength of the registration certificate that was still unamended, it was open to the Assessees to make the purchases by using th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ervations of the Supreme Court in the decision in Ramesh Chawla v. Commissioner of Sales Tax, Delhi (supra) are relevant: Since the relevant forms prescribed under Section 64 of the Delhi Sales Tax Act, 1975, and meant to be carried by the owner or person in-charge of a goods vehicle were not printed by the department and made available, the owners or person in-charge of the goods vehicle could not have the obligation to carry the declaration forms nor could the vehicle be detained for not carry .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

laration. The Appellants were issued Form ST-35 and ST-35/1 and declarations were given in both forms, which at the time of making of these declarations, could not be held to be false declarations. Another decision which is relevant in this context is MMTC v. State of Orissa 1987 65 STC 129 (Ori) where again it was observed that when the Form is not amended by the time of furnishing the declaration it was impossible on the part of the Assessee to furnish a declaration in the amended Form. 43. Th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

*bill(s)/cash memo(s) stated below are covered by *my/our registration certificate issued under rule 16 with No........ dated..........which is valid with effect from .................and are for resale in Delhi or part thereof in terms of sub-clause XXXIVA of rule 11 of Delhi Sales Tax Rules, 1975.] Bill/Cash Memo No. and Date Description of goods Value of goods Total The above statements are true to best of my knowledge and belief. Signature.................................... (Name of the per .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o longer in vogue after that date. The second factor that requires to be noticed is that the Form specifically refers authorisation to the under Rule 16 and striking out is only permissible when the payment is either by bill or by cash memo or the word me/our has to be used. This declaration clearly states that the goods are intended for resale in Delhi and for no other purpose. 45. With the Department in the present case having continued to issue, even after 30th September 1999 to purchasing de .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

wn whether the goods were going to be resold within Delhi or sold by way of inter-state sales. Even if the declarations were held to be invalid, it is the seller who would lose the benefit of the exemption. The consequence could not be that the price of the goods purchased would be included in the taxable turnover of the Assessees who are purchasing dealers as well as extended first point sellers under the DST Act. 46. One more submission that was made was that in terms of Clause 7A of the Retur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vides that where a dealer purchases goods on the strength of the registration certificate issued under Rule 16 and against Form ST-35(1) but utilises such goods not by way of sale but for a purpose other than that mentioned in Rule 11(XXXIVA) then the purchase price would be included in his taxable turnover. However, Rule 23A(2) itself is not applicable because the condition laid down for its applicability did not exist. In other words, with Form ST-37A not being formally withdrawn and in fact t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the unamended Form ST-35 for the sales made by way of inter-state sales. In other words, the question is answered in favour of the Assessee and against the Department. Question 2: Validity of the penalty 49. In view of the above answer, Question No.2 is also answered in the negative. In other words, it is held that the majority opinion was in error in upholding the levy of interest and penalty under Section 56 of the DST Act. In this context, reference made to the decision of the Supreme Cou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

does indicate that it is not a case of concealment of particulars but a case where there is a possible interpretation in favour of the Assessee. Question 3: Validity of the reassessment proceedings 50. The Court has been shown the order passed by the assessing authority. The Court notices that there is nothing in the order sheet which indicates if there is any formation of an opinion in terms of Section 24 of the DST Act that any taxable turnover had escaped assessment. The order sheets do not t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

taxable sales which is allowed after verification from the books of accounts... . The assessing authority thus examined the records, the declarations and the books of accounts produced by the Assessees. There was no new information on the basis of which the assessing authority could have reopened the assessment. 52. In other words, what the assessing authority was seeking to do by invoking Section 24 of the DST Act was to review the earlier order passed by him earlier after having realised that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the power exercisable under Section 46 of the Act. This legal position has been made explicit in the decisions of this Court in CST v. Janata Wire Works 1999 81 STC 250 (Del), Hoshyar Singh Suresh Chandra v. CST 136STC 173 (Del) and Krishna Enterprises v. CST 140 STC 148 (Del). 53. After the decision of this Court in Samagya Consultants (P) Ltd. v. CST 2001 (122) STC 512 (Del) and Jagdish Cold Storage & Ice Factory v. The Commissioner of Sales Tax, Delhi 2007-08 (46) DSTC J-1 (Del), the lega .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t the aforementioned observations of the Hon ble Delhi High Court be strictly adhered to and before issuing the notice in Form ST 15 under the aforesaid provision of Section 24, the reasons therefore invariably recorded on the order sheet. Non compliance will be viewed seriously. 54. The majority of the Tribunal has brushed aside the above contention by simply stating that the inclusion of the purchase price in respect of goods purchased by the Assessees against Form ST-35/1 had not been conside .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

News: Notification Issued For GST Actionable Claim On Branded Food Products

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Forum: Duty Drawback- Urgent

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Forum: GST Invoice

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Circular: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg.

News: GST implementation smoother than expected: Jaitley

Forum: GST - TRAN1 - filed - Data uploaded with Remarks Processed with Error - Not coming in Electronic credit ledger - need suggession guidance

Forum: 3B mistake

Forum: Input tax credit

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Due date of Filing TRAN-1

Highlight: Diversion of income at source - Joint venture agreement - 97% of the receipt transfer to M/s TRG Industries (P) Ltd. - scope of the agreement - it is diversion by overriding title - not taxable in the hands of assessee - HC

Highlight: Expenditure on eligible projects or schemes u/s 35AC - After 01.04.2017 the legislature desired to withdraw such deduction. - The Union legislature was competent to introduce such amendment - HC

Highlight: Transfer of trading assets at cost price, the profit component also stood transferred to the outgoing Directors, which otherwise belonged to the Company - the fact that AO has made the addition in the hands of the Directors would not make any difference - additions confirmed - HC

Highlight: The interest u/s 234B of the Act cannot go beyond the stage of S.245D(I) before the Settlement Commission - HC

Highlight: Galvanized iron pipe is a different commercial commodity than a iron pipe, therefore the activity of galvanization in our considered opinion amounts to manufacture - Deduction u/s 80-IB allowed - HC

Highlight: Penalty u/s 271C - non deduction of TDS on interest paid to sister concerns in terms of Section 194A - Levy of penalty confirmed - HC

Highlight: Disallowance of interest - reference to section 179 - The legislature has also recognised, that the doctrine of lifting of veil in the matter of tax dues is to be applied to prevent fraud etc. and not where the company has suffered despite its normal bona fide function. - HC

News: RBI Reference Rate for US $

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-UTT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017- UTT(R) to reduce CGST rate on specified supplies of Works Contract Services

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version