Allahabad HC rules Res-Judicata does not Apply to Tax Matters [Read Order]
Res-Judicata does not apply to tax matters, rules Allahabad HC
![Allahabad HC rules Res-Judicata does not Apply to Tax Matters [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/02/Allahabad-High-Court-Res-judicata-Tax-matters-Tax-news-Tax-updations-taxscan.jpg "Allahabad HC rules Res-Judicata does not Apply to Tax Matters [Read Order]")
In a recent decision the Allahabad High Court observed that the principle of res judicata does not apply to tax matters. One of the issues raised by the revision petitioner is whether the Tribunal was justified in affirming levy of entry tax on craft paper purchased by the applicant from outside the local area, though the craft paper purchased by the applicant has been used in...
In a recent decision the Allahabad High Court observed that the principle of res judicata does not apply to tax matters.
One of the issues raised by the revision petitioner is whether the Tribunal was justified in affirming levy of entry tax on craft paper purchased by the applicant from outside the local area, though the craft paper purchased by the applicant has been used in manufacturing of coated abrasive sheet ( Regmar paper ), and is not meant for writing, printing and packing as provided by notification no.104 dated 15.1.09, upon which only the entry tax is leviable.
It is to be noted that for the same assessee on the same issue the Tribunal had held in favour of the assessee for the assessment year 2010-11. The matter was carried to the Allahabad High Court by way of Sales/Trade Tax Revision No.728 of 2014 and the issue was decided in favour of the assessee and against the department.
In Bharat Sanchar Nigam Ltd. v. Union of India, the Supreme Court held that “The courts will generally adopt an earlier pronouncement of the law or a conclusion of fact unless there is a new ground urged or a material change in the factual position. The reason why court have held parties to the opinion expressed in a decision in one assessment year to the same opinion in a subsequent year is not because of any principle of res judicata but because of the theory of precedent or the precedential value of the earlier pronouncement.”
A Single Bench of Justice Shekhar B. Saraf observed that “One may of course keep in mind that in taxation matters, the principles of res-judicata do not apply squarely for one assessment year to the other. However, keeping in mind the doctrine of finality, unless there is a marked change from one assessment year to the other, the department cannot be allowed to take a different stand.”
To Read the full text of the Order CLICK HERE
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