2022 (8) TMI 1349

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....Appellate order dated 08.12.2013 passed by the Joint Commissioner (Appeal), Commercial Taxes Department, Government of Jharkhand, Jamshedpur Circle. Petitioner has filed Interlocutory Application No. 555/2021 bringing on record Appellate orders (Annexure-7) and order passed on remand (Annexure-8) passed in connection with the Financial Years 2010-11 and 2011-12. 3. According to the petitioner, the issue involved in the instant writ petition revolves around Section 2(lxA) and Section 35(7) of Jharkhand Value Added Tax Act, 2005 (in Short ' JVAT Act, 2005'). By virtue of the JVAT (Amendment) Ordinance, 2011 following provisions were inserted in the JVAT Act, 2005. "Section 2 (lxA)- "Value of goods' means, the true sale price or the true purchase price of the goods, or prevent fair market value of goods which is higher. Explanation- Fair Market Value means the price that the goods would ordinarily fetch on sale in the open market on the date of sale or dispatch or transfer of goods. Section 35 (7)- If the prescribed authority is satisfied that goods have been sold at a price higher than that shown by the dealer, he may determine value of goods at the t....

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.... 6. Respondents have taken a plea in their counter affidavit by referring to Section 35(7) of JVAT Act that Assessing Officer can make assessment of sale price by comparing the fair market price of iron ore. It has taken the ad-valorem price fixed by the IBM for the period September to December 2009 to ascertain the sale price, also after comparing with the prices of other Companies doing business. However, the Appellate Authority has in the context of Financial Years 2010-11 and 2011-12 accepted the plea of the petitioner, as per the orders at Annexure-7 to the instant I.A. Findings of the Appellate Authority at Annexure-7 as resects the above Financial Years, are extracted here-in-below: Annexure-8 is the order passed after remand, relevant extracts whereof are reproduced hereunder: 7. Respondent filed reply on 02.07.2022 to the I.A. No. 555/2021 and have brought on record the Gazette Notification dated 07.05.2011, copy of the Amendment Act pursuant to the Ordinance of 2011 (Annexure-B) and Assessment Orders for the year 2010-11 and 2011-12 (Annexure-C & D). A separate supplementary counter affidavit has also been filed on 02.07.2022 wherein a stand has been taken that in ....

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....but learned A.A.G-II appearing for the Respondent State, on instruction, stated that there are no apparent distinguishing factors in the orders passed by the Assessing Officer for the other two Financial Years in which also, computation of sale price has been made on the benchmark of ad-valorem price fixed by the IBM for the purposes of royalty. 9. Based on these background canvass of facts, the issue involved in respect of the Financial Year 2009-10 is, whether the petitioner had sold ROM at a higher price than shown by him. In that case, under Section 35(7), the prescribed authority may determine value of goods at the time of the sale and proceed to assess the tax on such price. Learned Tribunal has made observation at para-14 of the impugned order passed in the Revision Case No. JR 82 of 2013 (Period 2009-10 JVAT) that the State is not making any allegation of concealment of turnover of fixation of any higher price by the petitioner. State's only contention is that the IBM rate or the price fixed for calculation of royalty amount should have been considered as a measure to calculate the total GTO on the ground that the IBM rate has been evolved after considering the productio....

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....he sale prices of other dealers was not correct as there could be difference in the grade of ferrous content in the ROM sold by different companies. The average thereof could not be taken as benchmark for fixing the sale price of the petitioner. The Appellate authority therefore remanded the matter to examine these aspects. Annexure-8 to the second supplementary affidavit, extract of which has been quoted above, is the order of Deputy Commissioner, Chaibasa Circle passed after remand in respect of Financial Year 2010-11 and 2011-12. The order passed on remand holds that the previous assessment made in terms of Section 35(7) read with section 40(2) against the Assessee treating it as suppression of sale price, was not proper as the petitioner's dealer had sold ROM and not lumps and fines which could lead to a difference in the sale price. Imposition of tax and liability under section 35(7) read with section 40(2) of JVAT Act was therefore dropped. It was also held that no irregularity was found during the inquiry. Based on the Gross Turnover of Rs. 8,36,13,766.00 for the relevant financial year, tax at the rate of 4% was imposed totalling Rs. 33,44,550.64. 12. As noted at the out....

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....ent of Jharkhand, Chaibasa Circle, Chaibasa as also the order of the Appellate Authority dated 08.02.2011 passed by the Joint Commissioner, Commercial Taxes Department, Government of Jharkhand are quashed. Matter is remanded to the Assessing Officer to examine the case of petitioner in the light of the observation made by the Appellate Authority in respect of the Financial Years 2010-11, 2011-12 and the observation made hereinabove. Needless to say, petitioner shall cooperate in the proceeding. I.A. No. 555/2021 also stands disposed of. ============= Document 1 Annexure-7 वर्ष 2010-11 एवं 2011-12 के लिये पारित आदेशों के अवलोकन से प्रतीत होता है कि कर निर्धारण पदाधिकारी द्वारा आई. वी. एम. द्वारा निर्धाà....

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....¿à¤¯à¥‹à¤‚ में घोषित / लेखपुस्तों में दर्ज़ बिक्रय मूल्य से अधिक मूल्य पर मालों कि बिक्री कि गयी है तथा उस हद तक अंकेक्षित वार्षिक लेखा एवं बेलेंस शीट भी तथ्य से परे हैं अतएव इस बिंदु पर निम्न-न्यालालय के स्तर पर पुनर्जांच किया जाना न्à¤....

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....ंव्यवहार जांचोपरांत पदाधिकारी द्वारा स्थापित किया जाय। आलोच्य मामले में अपीलार्थी के लेखापुस्तकों की जाँच अंचल स्तर पर नहीं की गयी है जिससे विवरणियों में प्रदर्शित संव्यवहार तथा लेखापुस्तकों से स्पष्ट संव्यवहार के मिला....

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....क्त के अलावा इस बिंदु पर भी जाँच कि जाय कि अपीलार्थी द्वारा लौह अयस्क के प्रोसेसिंग एवं स्क्रीइंग हेतु प्लांट स्थापित किया गया है अथवा नहीं तथा अपीलार्थी द्वारा बेचे गए माल एवं उसके पड़ोसी खान पट्टाधारियों द्वारा बेचे गए माल ....

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....¤ªà¥€à¤²à¤¾à¤°à¥à¤¥à¥€ को सुनवाई का अबसर प्रदान कर लेखपुस्तो एवं साक्ष्यों की गहन जाँच के उपरांत विधिसम्मत संसोधित आदेश पारित करे।" Document 2 Annexure-8 "इस प्रकार तीनों बिंदुओं के जांचोपरांत यह निष्कर्ष पर पहुचें कि व्यवसायी ने Iron Ore ROM के रूप में बिक्री कियà....

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....या है और न ही इनके लाभ हानि खाते में इस तरह का व्यय प्रदर्शित हो रहा है। बिक्रेता द्वारा मालों कि बिक्री Ex Mines के आधार पर कि गयी है। कर निर्धारी पदाधिकारी द्वारा दो बड़ी कंपनियों के द्वारा बेचे गए लम्पस एवं उसके ग्रेड के आधार पर बिक्à....

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....¿à¤¯à¤® 2005 कि धारा 35 (7 ) के अंतर्गत मूल्य में अंतर वृद्धि को एवं धारा 40 (2) के अधिरोपित व्याज को समाप्त की जाती है। जाँच के क्रम में किसी भी तरह कि अनियमितता नहीं पायी गयी। अतः इनकी सकल विक्रय राशि रू० 8,36,13,766.00 निर्धारित की जाती है। निर्धारित | आवर्....