1996 (11) TMI 443 - AT - VAT and Sales Tax

Summary

Issues:
1. Maintainability of the application for revision under the Rajasthan Taxation Tribunal Act, 1995 and Rajasthan Sales Tax Act, 1994.
2. Liability of the non-petitioner-dealer for payment of interest under section 11B of the Rajasthan Sales Tax Act, 1954.
3. Date from which the non-petitioner-dealer should be held liable to pay interest under section 11B of the Act.

Analysis:

Issue 1: Maintainability of the application for revision
The Tribunal addressed the preliminary objection raised by the non-petitioner-dealer's counsel regarding the maintainability of the revision application. The counsel argued that the application should have been filed by the Commissioner of Commercial Taxes Department, Jaipur. However, the Tribunal clarified that as per Section 86(2) of the Rajasthan Sales Tax Act, 1994, the Commissioner has the authority to direct any officer to file a revision application. Therefore, the application filed by the aggrieved person other than the Commissioner was deemed maintainable.

Issue 2: Liability for payment of interest under section 11B
The non-petitioner-dealer contended that since the first appellate authority had set aside the tax, the liability for interest under section 11B of the Act should not be imposed. The dealer argued that interest should be payable from the date of the Tribunal's judgment, not from the date of the assessment order. The Tribunal, however, held that the non-petitioner was granted time to produce "C" forms, which were not furnished, making them liable to pay Central sales tax. The Tribunal referred to relevant case laws and reinstated the liability to pay interest from the date of the assessment order.

Issue 3: Date of liability for interest under section 11B
The Tribunal deliberated on the date from which the non-petitioner-dealer should be held accountable for paying interest under section 11B of the Act. It noted that the liability for interest was revived from the date of the assessment order, as there was no provision exempting the dealer from paying interest during the period between the first appellate authority's order and the Tribunal's judgment. The Tribunal referred to the specific provision in section 11B(2) of the Act, emphasizing the liability to pay interest from the date specified in the order passed in appeal or revision. The Tribunal allowed the revision application, setting aside the previous orders and restoring the assessment order.

In conclusion, the Tribunal allowed the revision application, setting aside the previous orders and restoring the assessment order, holding the non-petitioner-dealer liable to pay interest from the date of the assessment order as per the provisions of section 11B of the Act.