Assessment order set aside; revision dismissed for delay and merits-receipt of set-top boxes alone insufficient to create tax liability

HC set aside the assessment order and dismissed the revision. The court held that even if there were facts suggesting a sale element (receipt of set-top boxes valued at Rs. 1,200 each), that alone did not establish tax liability under the Act absent any enabling provision or a lawful method of apportionment or bifurcation of value. The revision was dismissed both for delay and on merits because the asserted factual contention could not, by itself, sustain taxation.

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Revision filed after a delay of 165 days; rejoinder affidavit in the delay-condonation matter was taken on record. Revision by revenue challenged order dated 23.04.2016 of the Commercial Tax Tribunal, Meerut, which in Second Appeal No. 1 of 2016 for A.Y. 2013-14 had "allowed the assessee's appeal and set aside the assessment order." During the year the assessee provided cable television network services to subscribers and had been subjected to service tax. The Tribunal set aside the assessment under the UP VAT Act, 2008 on the reasoning that the assessee was only a "service provider." Revenue contended there was an element of sale of goods-specifically a "set top box" valued at Rs. 1,200 received from each subscriber-but the court held that even if factually correct, such an element does not by itself establish liability under the Act unless an enabling provision is shown or a proper "calculation or bifurcation or apportionment of the total value" is made. The revision was dismissed both on delay and on the substantive reasoning.

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