2019 (3) TMI 441

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....y for Clarification and Advance Ruling, dated 25.10.2016. According to the petitioner, the rate of tax applicable to sell the used/recondition cars for a dealer of automobiles is as follows:- "For Dealers in automobiles: (i) Notification No.II(1)/CTR/30(a-5)/2007 in G.O.Ms.No.79 CT&R(B2) Dept, dated 23.03.2007 makes reduction in the rate of tax payable by any dealer on the sale of Used Cars/Motor vehicles on value addition without input tax credit to 4%. (ii) Notification No.II(1)/CTR/12(R-20)/2008 in G.O.Ms.No.78, CT&R(B2) Dept, dated 11.07.2011 makes reduction in the rate of tax payable by any dealer on the sale of above good to 5%." 3.It is also the case of the petitioner that the petitioner in his reply sent to the second respond....

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....1)/CTR/30(a-5)/2007 in G.O.Ms.No. 79, CT&R (B2) Dept, dated 23.03.2007, wherein the automobile dealers were liable to pay tax on value addition without input tax credit and not on entire sale value at 4% upto 11.07.2011 and he also drew the attention of this Court to Notification No.II(1)/CTR/12(R-20)/2008 in G.O.Ms.No.78, CT&R (B2) Dept, dated 11.07.2011, wherein the registered automobile dealers were liable to pay tax only on value addition without input tax credit and not on entire sale value at 5% from 12.07.2011. 6.The learned counsel for the petitioner placed reliance upon the judgment of the Hon'ble Supreme Court in Commissioner of Sales Tax, Uttrapradesh Vs. Indra Industries reported in 122 STC 100, wherein he referred to parag....

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....d 5% were effected for sales from 12.07.2011 onwards. The Proceedings of the Authority for Clarification and Advance Ruling, dated 25.10.2016, has clarified both the G.O.Ms.No.78 and 79. They have clarified that only 4% of the tax is payable if the sales were effected upto 11.07.2011 and 5% tax is payable if the sales were effected from 12.07.2011 onwards. Despite categorical clarification given in the Proceedings of the Authority for Clarification and Advance Ruling, dated 25.10.2016, the respondent has passed the impugned assessment order levying higher rate of tax at 14.5%, based on the entire value of the cars in stead of 5% on the value addition of the cars alone. As rightly pointed by the learned counsel for the petitioner that when t....