2003 (4) TMI 543 - HC - VAT and Sales Tax

Summary

Issues:
1. Assessment of sales tax for the period 1995-96.
2. Grievances against the assessment order.
3. Benefit of tax deducted at source.
4. Assessment of items procured in inter-State and intra-State sales.
5. Exemption on account of labour and other charges.
6. Compliance with rule 14(1)(d) of the Rules framed under the Act, 1993.

Analysis:

1. The petitioner-company was assessed to sales tax for the period 1995-96, leading to the filing of a revision application under section 36 of the Assam General Sales Tax Act, 1993. The main grievances projected against the assessment order were related to the benefit of tax already deducted at source, assessment of items procured in sales, exemption on labour and other charges, and non-adherence to rule 14(1)(d) of the Rules.

2. The benefit of tax already deducted at source was a significant issue. The court clarified that adjustment of taxes deducted at source should be allowed upon the production of the statutorily prescribed tax deduction certificate. The assessing officer was directed to provide necessary benefits to the assessee based on valid tax deduction certificates.

3. Regarding the assessment of items procured in inter-State and intra-State sales, the court emphasized that exclusion of turnover should be allowed if valid documents substantiate the claims. The assessing officer was instructed to reconsider these claims in light of the court's conclusions.

4. The issue of exemption on account of labour and other charges was also addressed. The court noted that the claims made by the petitioner were considered excessive and not substantiated with valid documents. Deductions were allowed as per Schedule VI, and the court found no reason to direct a reopening of this matter.

5. Compliance with rule 14(1)(d) of the Rules was raised as a contention by the petitioner. However, the court ruled that this argument was presented for the first time in the writ petition and could not be considered as the assessment order had not been challenged on this basis earlier.

6. In conclusion, the writ petition was allowed in part, with directions for the reassessment of the tax deducted at source and the exclusion of turnover on certain items. The assessing officer was instructed to re-examine the relevant aspects based on the materials already on record, and modify the assessment order if necessary.