2011 (11) TMI 627 - HC - VAT and Sales Tax

Court upholds reassessment order denying tax exemption for failure to produce required form, emphasizing compliance with statutory provisions.

The court dismissed the writ petitions challenging a reassessment order directing tax payment due to non-compliance with conditions for tax exemption ... - Issues involved: Petitioner seeking writ to quash reassessment order, declare sales eligible for incentive u/s 8(5) of CST Act, mandamus for tax exemption without form C, challenge applicability of notification dated May 31, 2002.Quashing of reassessment order: Petitioner, a company under Companies Act and dealer u/s KST Act, sought to challenge reassessment order directing payment of tax due to non-production of form C for tax exemption u/s 8(5) of CST Act. Court found assessing authority's decision justified as petitioner failed to fulfill conditions for benefit under section 8(5) of CST Act, leading to dismissal of writ petitions.Interpretation of section 8(5) of CST Act: Referring to a previous judgment, the court clarified that section 8(5) of CST Act is prospective and not an absolute right, requiring fulfillment of specified conditions for availing benefits. Emphasized that non-production of form C by petitioner rendered them ineligible for tax exemption, supporting the reassessing authority's decision to reverse the order of assessment.Conclusion: After hearing arguments and reviewing the case, the court dismissed the writ petitions, upholding the reassessing authority's decision to hold the petitioner liable for tax payment due to non-compliance with the conditions of section 8(5) of CST Act. The judgment highlighted the importance of fulfilling statutory requirements for claiming tax benefits under the relevant provisions.