TMI Blog2016 (1) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... th law Whether the amount of purchase tax can be demanded from the appellant under Rule 28B(3)(j) of the Rules especially when it had been granted exemption from payment of tax - held that:- A plain reading of Rule 28B(3)(j) of the Rules clearly spells out that the beneficiary unit is entitled to exemption from payment of sales tax on the sale of finished products and not exemption from the payment of purchase tax. In other words, the unit is entitled to exemption from the payment of sales tax only on the sale of goods manufactured by it and any purchase tax leviable was recoverable from the said unit. Thus, the Tribunal was right in holding that the notional tax liability calculated for the purposes of setting off against the tax exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case, the declaration forms in the possession of the appellant dealer should be permitted to be taken on record and consequential benefit be granted? (ii) Whether in the facts and circumstances of the case, the declaration forms can be produced at the appellate stage and even at the High Court stage? (iii) Whether in the facts and circumstances of the case, the appellant dealer should be made to suffer for the fault of the counsel who without of the knowledge of the dealer and for reasons best known to him did not press the said issue at the final arguments before the Tribunal? (iv) Whether in the facts and circumstances of the case, the benefit given under Rule 28B covers purchase tax liability? (v) Whether in the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssues that arise for adjudication in these appeals are:- (i) Whether the appellant is entitled to produce the STDIV declaration and ST-14B Forms, even before the appellate authority? (ii) Whether the amount of purchase tax can be demanded from the appellant under Rule 28B(3)(j) of the Rules especially when it had been granted exemption from payment of tax? 7. Issue No.(i) is covered by the decision of this Court in Jai Hanuman Stone Crushing Mills, Bhiwani v. The State of Haryana and others (2014) 47 PHT 172 (P H), wherein this Court while disposing of the matter held that the petitioner therein is entitled to produce the tax invoices, Forms VAT C-4 and Forms VAT D-1 before the Assessing Authority who thereafter has to determine th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clude purchase tax and, therefore, the amount of purchase tax levied was recoverable from the appellant. The findings recorded by the Tribunal read thus:- 3. The second issue raised by Mr. K.K. Gupta, learned counsel for the appellant, is that the amount of purchase tax assessed cannot be demanded from the appellant-company because it had been enjoying exemption from payment of tax during the year 2000- 01 and as per the interpretation of law, vide K.K. Spinners' case decided on 21.7.22000, reported in (2000) 16 PHT 265, which held the field at the relevant time, though purchase tax was leviable yet it was not recoverable and was to be adjusted against the tax exemption limit, so the revising authority could not have demanded the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , that it means the amount of tax payable on the sale of finished products under the local sales tax law (HGST Act) and the CST Act; and in clause (b) of sub rule (8) of rule 28B, it is stated, ...The (exemption/entitlement) certificate issued shall be valid unless cancelled or withdrawn from the date of commercial production to the 30th June next or when notional sales tax liability first exceeds the quantum of tax exemption/deferment fixed for the unit, whichever is earlier. It is also evident from these provisions that tax exemption is to be computed in terms of NSTL and NSTL does not include purchase tax. So any purchase tax leviable is recoverable. We may further observe that the case of K.K. Spinners (supra) was not cited before the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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