Entry tax on imports
Levy of Entry tax on imports
from outside the “country” not permissible under the Assam entry Tax Act,
2001. The Act seeks to levy tax on entry of goods into the local area from
another local area or from outside the state but does not envisage levy
of tax on goods brought into the local area from outside the country.
The Legislature had consciously used the words “including a place outside the
state” but did not mean to convey “outside the country” since the distinction
between the two is quite obvious.
Primus Imaging P. Ltd. vs.
State of Assam and Anr. (2007) 9 VST 528 (Gauhati)
Branch Transfer — Form F
mandatory for all interstate movement of goods other than by way of sale
The Allahabad HC has held
that production of Form F is mandatory to discharge the burden placed by
Section 6A of the CST Act since Section 6 is expressly made subject to the
other provisions contained in the Act. Form F would be required even if the
goods were sent to a Job worker outside the state under a bailment (or
received back) and not pursuant to a contract of agency since Form F is
required to be produced in all cases where movement of goods other than by way
of sale is to be proved. The Court drew support from Ashok Leyland (2004) 3
SCC 1 and the fact that Sec. 2(g)(ii) of the CST Act considers with transfer
of property in goods, whether as goods or in some other form, involved in the
execution of a inter state works contract as a sale.
Ambica Steels Ltd. vs.
State of U.P and Others – Writ Petition No. 302 of 2007 decided on 17-8-2007
by the Allahabad High Court
Omission to deduct/shortfall in
deduction of tax at source – Implications
The S.C. has held that in the
event of non deduction or short deduction of income tax at source as per the
provisions of the Income Tax Act, 1961 the CBDT Circular No. 275 /201/95-IT(B)
dated 29.1.1997 would operate and no demand of tax could be enforced against
the Tax-Deductor if taxes have been paid by the deductee-assessee. However,
the liability to charge interest under Sec. 201(1A) till the date of payment
of taxes by the deductee-assessee or the liability to penalty u/s 271C would
remain unaltered.
Hindustan Coca Cola
Beverage P. Ltd. vs. CIT — 16-8-2007
Form C – Purchase of supporting
machinery against Form C valid
Purchase of Lathe Machine for
repairs of Moulds used in the manufacture of glass chatons was eligible to be
purchased on Form C although the Lathe Machine was not directly used in the
manufacture of goods for sale.
Jai Glass – 8 VST 770
(Raj.)
Aggrieved person –
Buyer can be an aggrieved person eligible to move an application under the
West Bengal Taxation Tribunal Act, 1987 if the seller refuses to challenge the
validity of levy of sales tax on the impugned transaction between the buyer
and the seller. The WBTT observed that although the seller is the dealer in
respect of sales and sales tax, it realizes the tax from the buyer and as such
does not ordinarily suffer anything as it is not required to pay from his own
fund. In case of any illegal or unjust realization, it is the buyer who
suffers and not the seller and as such the buyer could be the “aggrieved
person”
BOC India vs.
Commissioner, CT (WBTT) 9 VST 573 (WBTT)
Accessories – Meaning
Number plates were
“accessories” of vehicles as they add to the convenient use of the motor
vehicle – they serve to identify the vehicle. Accessories can be supplementary
or subordinate and not necessarily essential for the functioning of the
product.
Pragati Silicon P. Ltd.
vs. Commissioner of Central Excise 8 VST 705 (S.C.)
Rectification suo motu
Suo motu rectification order
is required to be passed within the limitation period - 3 years from the end
of the period of assessment and mere initiation of rectification proceedings
within the time limit specified above would not be sufficient.
Assam Tea Brokers P. Ltd.
8 VST 621
Interest on delayed refund
Failure by the Department to
make refund within 90 days of assessee’s application for refund pursuant to
appellate order would entail payment of interest. The Department’s plea to
exclude time taken to take approval of the Commissioner in case of high refund
amounts and penal proceedings against the assessee was not accepted.
Escotel Mobile
Communications Ltd. vs. State of Haryana and Anr. 9 VST 382 (P & H)
Goods in transit through state
Goods in transit from Bihar
to Orissa through the state of West Bengal were intercepted for non production
of all transport documents and penalty was levied after considering the total
value of all goods. The Tribunal held that penalty could not be levied in
respect of value of goods that were tax free but was leviable on other taxable
goods.
Sri Subir Das Gupta (2007)
9 VST 606 (WBTT)
Deduction for furnace oil used
in manufacture of iron and steel
The P & H HC has held that
furnace oil was a primary commodity used in the manufacture of iron and steel
and without use thereof, production itself was not possible. Thus the furnace
oil purchased could be said to have been used or consumed in the manufacture
of goods other than tax free goods and the dealer was entitled to deduction of
purchase value of furnace oil. If a process or an activity is such an integral
part of the ultimate manufacture of goods that in its absence the manufacture
may not be commercially expedient, that activity or process must be considered
as a manufacturing activity itself and the goods intended for use in that
process or activity to be goods required in the manufacture of other goods for
sale.
Partap Steel Rolling Mills
Ltd. vs. State of Punjab (2007) 9 VST 629 (P & H)