TaxTMI 
TaxTMI 
2014 (4) TMI 494
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....merit despite the fact that the principal order under challenge was a notice under section 44 and not the assessment order?" 3.The appeal is taken for final hearing straightway at the request of learned counsel for the parties. The Government has challenged an order of the Value Added Tax Tribunal ("the Tribunal" for short) dated 30.4.2010. 4.Brief history is as follows : 4.1. The respondent company (hereinafter referred to as "the assessee") is engaged in the activities of manufacturing and exporting goods. For the said purpose, the respondent established two units which were covered by sales tax incentives declared by the State Government. These units were for the purpose of manufacturing pipes and coating pipes respectively. The....
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....eal is allowed. The order of both the lower authorities i.e. order dated 13.11.09 and also order of learned Assistant Commissioner dated 25.05.09 to curtail the incentive limit even by tax relating to purchases of goods used for the manufacture of goods exported outside the country and recovery of such amount in cash is bad and illegal and liable to be set aside. 2. In our view, it may be held that incentive limit cannot be curtailed by tax relating to purchase of goods used in the manufacture of goods exported outside the country. In view of the same the authority is directed to assess the case of the appellant accordingly." 4.5. While doing so, the tribunal examined various statutory provisions and the tax exemption scheme of the St....
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....have effect after the expiry of a period of one year from the date of the order made under sub-section (1). 8. It can thus be seen that powers under section 45 are extraordinary measures to be taken for protecting the interest of the Government revenue when necessary requirements are satisfied. Even then the order that can be passed is one of provisional attachment and life of such attachment is limited to that provided in subsection (2). 9.On the other hand, section 44 of the VAT Act pertains to special mode of recovery. Sub-section (1) there of reads as under : "44. (1) Notwithstanding anything contained in any law or contract to the contrary, the Commissioner may, at any time or from time to time, by notice in writing, a copy of....
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....ther through the special mode as provided in section 44 or through any other mode under the Act would arise. In the present case, when admittedly no order of assessment or any other order of quantification of the assessee's liability was passed, straightway ordering recovery without any opportunity of hearing to the assessee was wholly not permissible. 11. In that view of the matter, tribunal's final conclusion that notice of recovery and the appellate order confirming such notice must be quashed, was perfectly in order. 12. We are however, in agreement with the suggestion of learned AGP that while doing so the tribunal could not have gone into the validity of merits and de-merits of rival stands. Such a stage had not yet arisen. The ....