The Delhi High Court has recently remanded a matter to the assessing authority for fresh adjudication on the inter-state sales transaction claim of the assessee.
The adjudicating authority had found that the petitioner had failed to prove that the subject turnover was covered under Section 3 of the Central Sales Tax Act, 1956, and, therefore, held that the petitioner was liable to pay the tax at the rate of 12.5% and not at the concessional rate of tax at 2%.
The petitioner aggrieved by the said notices, relating to the second, third and fourth quarters of the financial year 2016-17 and by notices for levy of penalty under Section 86(10) of the Delhi Value Added Tax Act, 2004, read with Section 9(2) of the Central Sales Tax Act, 1956; approached the Special Objection Hearing Authority and produced C-Forms.
The SOHA passed the impugned orders dated 22.05.2019 (separate orders for the three quarters), rejecting the petitioner’s claim for a concessional rate of duty on inter-State turnover.
According to the petitioner, it did not receive any notice under Section 59(2) of the Delhi Value Added Tax Act.
It was submitted that the petitioner had the relevant documents to establish the inter-State sales, however, it could not produce the same because of the non-receipt of any notice.
The Bench observed that “It appears from the said orders that the concessional rate of duty had been denied to the petitioner on the ground that the CForms, relied upon by the petitioner, had been cancelled by the concerned tax authorities in Haryana with retrospective effect.”
It was also noted that the assessee is willing to furnish the required documents to establish the genuineness of the nature of sales as inter-state for the purpose of concessional rate of tax by the Division Bench of the Delhi High Court that heard the case.
Justice Vibhu Bakhru and Justice Amit Mahajan further stated that the assessing authority is requested to complete the proceedings within a period of three months, after giving due opportunity to the petitioner, by placing reliance on Indo Silicon Electronics Pvt. Ltd. and Surinder Pal and Sons-HUF.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
