9911796707
TMI Blog2022 (5) TMI 1392X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006-07 respectively. The instant appeal under Section 36 of the Haryana Value Added Tax Act 2003 is against the order dated 29.08.2017 (Annexure A-8) passed by the Tribunal in STA No.180 of 2009-10 pertaining to the assessment year 2004-05. A brief factual backdrop would be necessary. Appellant herein is a Corporation established under the State Financial Corporation Act 1951 and the State of Haryana is a major stake holder in the Corporation. In the year 1993-94, the Corporation decided to start leasing activities providing for 100% finance of equipment(s) and giving the same on lease to industrial concerns on lease rental for a specified period under the State of Haryana. The ownership/title of the equipment continued to vest in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... folio, the appellant-Corporation even floated a liberal Scheme of Settlement of Lease Amount dated 16.06.2003 (Annexure A-4) also termed as One Time Settlement Scheme. For the assessment year 2004-05 Corporation filed its returns reflecting a gross turnover of Rs.2,70,343/- and deposited the requisite tax. Case of the appellant was taken up for scrutiny by the ETO-cum-Assessing Authority, Panchkula. The Assessing Authority pointed out that there is a difference of Rs.1,25,65,053/- in the returns furnished. The appellant-Corporation responded by taking a stand that such amount was recovered under the One Time Settlement Scheme following the capital recovery method by treating the lease rental as principal amount. On the residual value of ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and as such the taxable event has not occurred in the State of Haryana. It is asserted that as per settled law, tax cannot be levied in a state where 'situs of sale" is not there. It was then argued by counsel that the appellant had converted the amount of outstanding lease rentals into a loan amount which could have been settled under the One Time Settlement Scheme opted by the lessees. Since the amount had been recovered not as outstanding lease amount but as a recovery of loan amount, the same could not have been equated with the lease rentals on which tax could have been imposed. Based on such submissions counsel has formulated the following two substantial questions of law to be considered:- (i) Whether in the facts and circum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts were entered into at Chandigarh, it would deprive the authorities in Haryana to levy tax on the transactions which have taken place within the State. The Tribunal while taking such view has even referred to the judgment of the Hon'ble Supreme Court in 20th Century Finance Corporation Ltd. And another vs. State of Mahrashtra (2000) 119 Sale Tax cases 182. We find that the question of law as culled out at serial No.(i) is no longer res integra. The issue would be covered by the judgment of the Apex Court in 20th Century Finance Corporation Ltd. (supra) wherein it had been held as follows:- We, therefore, find that the location or delivery of goods within the State cannot be made a basis for levy of tax on sales of goods. Under gener ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) SCC 354. It is the conceded factual premise at the hands of learned State counsel that the agreement(s) in question took place not in the State of Haryana but at Chandigarh. Under such circumstances the dictum laid down by the Apex Court in the case of 20th Century Finance Corporation Limited (supra) would squarely apply to the facts of the present case and in favour of the assessee i.e. the appellant-Corporation. The question of law at serial no.(i) culled out hereinabove is as such answered in favour of the assessee. We are constrained to observe that in such regard the Tribunal while passing the impugned order dated 29.08.2017 (Annexure A-8) has proceeded on a clear misreading of the judgment in 20th Century Finance Corporation Limit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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