2018 (10) TMI 1410 - HC - VAT and Sales Tax

Court overturns penalty on assessee for Form-C issue due to tribunal error. Registration certificate crucial.

M/s Ghanaram Engineers And Contractor Versus The Commissioner Commercil Taxes

M/s Ghanaram Engineers And Contractor Versus The Commissioner Commercil Taxes - TMI Issues:1. Validity of penalty imposed for issuing Form-C for purchase of 'dumper' without entitlement.Analysis:The judgment concerns a revision against an order of the Commercial Tax Tribunal affirming the imposition of a penalty on the assessee for issuing Form-C for the purchase of a 'dumper' without entitlement. The tribunal upheld the penalty based on the ground that the assessee was not entitled to purchase a dumper. However, the assessee relied on a registration certificate issued under the Central Sales Tax Act, which specifically included 'dumper' in column 16(a. The defense argued that the purchase of the 'dumper' was permitted under the registration certificate, making the penalty proceedings unsustainable.The court noted that the tribunal failed to consider the registration certificate, which clearly indicated that the assessee was registered for the purchase of a 'dumper' as well. Additionally, the court highlighted that the same registration certificate had been used in proceedings related to entry tax to drop the imposition of entry tax. Despite bringing this to the tribunal's attention, it was not considered in the decision. Consequently, the court quashed the tribunal's order dated 11.10.2018, emphasizing that the tribunal had overlooked crucial evidence and documents on record. The matter was remitted back to the tribunal for a fresh consideration, taking into account the material facts and documents presented.In conclusion, the court disposed of the revision by setting aside the tribunal's order and instructing a reevaluation of the case with proper consideration of the registration certificate's contents and its implications on the entitlement to purchase a 'dumper.'