2023 (3) TMI 60

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..... Vide assessment order dated 15.05.2007 (Annexure P-1), the original assessment of the respondent-assessee, for the assessment year 2004-2005, was framed by the Assessing Authority, Ludhiana under Section 9 (2) of the Central Sales Tax Act, 1956 read with Section 11 of the Punjab General Sales Tax Act, 1948 (for short 'PGST Act'), whereby demand was shown as 'NIL'. Subsequently, while exercising the suo-moto powers under Section 21 (1) of the PGST Act read with Section 9 (2) of the CAST Act, the Assistant Excise & Taxation Commissioner-cum-Revisional Authority, Ludhiana-III, initiated the revisional proceedings by holding that in the aforesaid assessment order dated 15.05.2007 (Annexure P-1), inter-state sales amounting to Rs.3,39,64,182/-....

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....thority framed the assessment under Section 21 of the PGST Act on the basis of CST @ 4% in respect of the inter-state sales made by the respondent against 'D' Forms instead of 2% as claimed by the respondent. Vide order dated 23.11.2009 (Annexure P-2), a demand of Rs.6,69,450/- was raised against the respondent. Feeling aggrieved, the respondent preferred a revision under Section 9 (2) of the CST Act, 1956 read with Section 21 (3) of the PGST Act, 1948 before the Value Added Tax Tribunal, Punjab. Vide order dated 03.12.2010 (Annexure P-3), the Tribunal accepted the revision filed by the respondent-assessee and set aside the order dated 23.11.2009 (Annexure P- 2) passed by the Revisional Authority. Hence, the present revision. The Trib....

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....he time of assessment." Learned State counsel has vehemently argued that once, it is specifically stated in the notification that this benefit of calculation of 2% of tax is to be given on the basis of production of 'C' Form, the respondent cannot claim the benefit of above said notification by producing declaration of Form 'D'. He has further argued that the Tribunal has referred to the judgment passed in State of Punjab vs. M/s Shreyans Industries Ltd., VATAP No.74 of 2010 (decided on 02.02.2011) and the ratio of that judgment could not be applied in the present case, as the facts therein were different altogether. The aforesaid judgment has been annexed as Annexure R-1 and a perusal thereof shows that the assessee was manufacturer ....

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....dhiana to waive off 4% tax on all kinds of waste viz. Acrylic, Synthetic, Staple and Hosiery waste; Representation (Annexure R-5) of Federation of Yarn Trade & Industries, Ludhiana, regarding reduction of rate of sales tax; Representation (Annexure R-6) of the Federation of Yard Trade & Industries and Appollo Fibres Limited, Hoshiarpur and representation (Annexure R-7) made by the Yarn Dealers Association to reduce the sales tax on yarn from 4% to 2%. In all these representations, a prayer has been made to grant the above said benefit on production of Forms 'C' and 'D'. Finally, notification dated 11.09.2000 (Annexure R-1) was issued, as per which, the Central Government had notified charging of 2% tax on interstate sales, subject to the co....

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....alers outside State of Punjab and this included the Government dealers as well. However, at the time of issuing final notification, words "declaration in Form D" could not be mentioned. This omission in itself cannot alter the meaning of the notification as a whole, whereby it is clearly mentioned that benefit of this notification is to be given to any dealier having his place of business outside the State of Punjab. Any dealer would include private as well as Government dealer. Only declarations in Form 'C' and Form 'D' were to be provided by the private and Government dealers respectively. Guidelines for presenting Form 'C' and 'D' by the private as well as Government dealers have also been laid down separately. This is only a procedur....