TaxTMI 
TaxTMI 
2011 (1) TMI 1264
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....rinting the aforesaid printing items and the tender offered by the petitioner was accepted. Accordingly, the petitioner has done the printing works and submitted the bill(s). According to the petitioner, the aforesaid printing items fall within the definition of "books, periodicals and journals" in terms of entry at serial No. 5 of the First Schedule to the Assam Value Added Tax Act, 2003 (hereinafter referred to, for short as, "the Act, 2003") which are exempted from payment of VAT. But while making payment of the bill(s) of the petitioner, respondent No. 3, vide his letter dated April 2, 2009 (annexure F) informed the petitioner that the petitioner is to pay VAT, though the aforesaid materials are not taxable, rather exempted from the tax liability, even as per the taxing authority. Thereafter, although the petitioner vide letter dated April 3, 2009 informed respondent No. 3 that as per First Schedule under section 9 of the Act, 2003, the printing books are exempted from payment of VAT, respondent No. 3 vide impugned order dated April 27, 2009 (annexure H) informed the petitioner that the payment of the bill of the petitioner will be made subject to the deduction of VAT. The peti....
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.... clarified that the materials supplied by the petitioner were exempted in view of entry at serial No. 5 of the First Schedule to the Act, 2003 and any administrative authority whatever higher position he holds including respondent No. 4, has no power to alter the same, rather he is bound to be guided by the said decision being it is the taxing authority who can only clarify which material comes within the purview of the tax under the statute. She further submits that the materials supplied by the petitioner are not mere printing materials, those are bound printing books with cover and the said work is nothing but a supply simplicitor which do not come within description of works contract as prescribed in Sixth Schedule to the Act, 2003. Supply and fixing or installation or fitting/fixing or installation of goods would only come within the purview of the works contract, not the supply simplicitor. She again urges that respondent No. 5 though did not file any affidavitin-opposition, but respondent No. 6, the Commissioner and Secretary, Finance by way of filing his affidavit-in-opposition though admitted that compendium, hand books manual, etc., have been clarified by the Commis....
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....tioner for printing hand book, etc., in connection with the general election to Lok Sabha, 2009. Mr. Saikia, while on the one way supporting the clarification of respondent No. 5, on the other way placed reliance on annexure 1 to the affidavit-inopposition filed by respondent No. 6, wherein it is stated that "it appears from your endorsement dated August 4, 2009 at page 22/N of your file No. ELE.117/2008/pt that the rates for printing books for election procedure, as quoted by the dealer, are inclusive of VAT. The same is, therefore, to be deducted from the bills". While making submission, the learned counsel for the parties have referred to the provisions of section 9 of the Act, 2003 and the entry at serial No. 5 of the First Schedule, which are reproduced as under: "9. Exemptions and zero rating.-(1) The sale of goods listed in the First Schedule shall be exempt from tax subject to conditions and exceptions, if any, set out therein. (2) The sales of goods in the course of export out of the territory of India falling within the scope of section 5 of the Central Sales Tax Act, 1956 shall be zero-rated. (3) Any sale of goods made by a registered dealer from a domesti....
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....ot be said to be their independent judgment in any sense of the word. An appeal then to the Collector becomes an empty formality. In Commissioner of Sales Tax, U.P. v. Indra Industries [2001] 122 STC 100 (SC); [2000] 9 SCC 66, their Lordship taking note of para 18 of the judgment (page 56 in 90 STC) in the case of Bengal Iron Corporation v. Commercial Tax Officer [1993] 90 STC 47 (SC); [1994] Supp (1) SCC 310 held in para 3 (page 102 in 122 STC) of the judgment that "a circular by tax authorities is not binding on the courts. It is not binding on the assessee. However, the interpretation that is thereby placed by the taxing authority on the law is binding on that taxing authority. In other words, the taxing authority cannot be heard to advance an argument that is contrary to that interpretation". (emphasis(1) supplied) It appears from the record that admittedly the taxing authority, the Commissioner of Taxes, respondent No. 5, in his order dated May 28, 2009 came to a conclusion that the materials supplied by the petitioner are bound books with cover and as per entry at serial No. 5 of the First Schedule to the Act, 2003, those are exempted from VAT. When the taxing author....