Petition to Quash Tax Exemption Order Disposed

The petition challenging the order of the revisional authority regarding tax exemption policy under the MP GST Act, 1958 and CST Act, 1956 was disposed of with the direction to quash the order dated 21st December, 2010. The Revisional Authority was instructed to reevaluate the petitioner's eligibility for set off in accordance with the exemption granted as per Annexure P/3.

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Issues involved: Petition assailing order of revisional authority regarding tax exemption policy under MP GST Act, 1958 and CST Act, 1956.

Summary:

The petitioner, a public limited company, challenged the order of the revisional authority dated 21st December, 2010, related to tax exemption granted under the Government's policy. The exemption allowed the petitioner to avail of facilities based on the cumulative quantum of tax payable under the Madhya Pradesh General Sales Tax Act, 1958 and the Central Sales Tax Act, 1956. However, due to non-submission of "C" Form for certain inter-State transactions, the petitioner was found ineligible for benefits as per the amendment in section 8(5) of the Central Sales Tax Act. A circular issued on 10/6/2008 highlighted this issue, leading to the imposition of tax amounting to Rs. 34,86,955/- as per the impugned order Annexure P/1.

The petitioner acknowledged the validity of the amendment in section 8(5) of the Central Sales Tax Act, accepting liability for the tax. However, the petitioner argued that this tax should be set off against their liability considering the exemption granted to them. The Revisional Authority failed to address this aspect in the impugned order Annexure P/1.

Consequently, the petition was disposed of with the direction to quash the order dated 21st December, 2010, and for the Revisional Authority to reevaluate the petitioner's eligibility for set off in line with the exemption granted as per Annexure P/3.

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