2005 (2) TMI 813 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to order under Rajasthan Sales Tax Act and Central Sales Tax Act regarding exemption percentage granted in certificate.

Analysis:
The petitioner challenged an order dated March 10, 2003, where the Assistant Commissioner issued notices under relevant tax acts, alleging the petitioner availed 75% tax exemption instead of the eligible 60%. The petitioner held an exemption certificate specifying the 75% exemption and a requirement to deposit 25% of the tax amount, issued on January 13, 1996. The petitioner argued that once an exemption certificate is granted, the taxing authority cannot deviate from the relief granted in the certificate. Citing a previous case, the court emphasized that the taxing authority cannot unilaterally cancel or question a certificate issued by the District Level Screening Committee. The court held that the notice issued by the Assistant Commissioner was without jurisdiction and unsustainable.

The court emphasized that the taxing authority cannot challenge an exemption certificate issued by the Committee without following the correct procedure of approaching the Committee for corrections. The certificate clearly stated the petitioner's entitlement to a 75% tax exemption, and the notice issued by the Assistant Commissioner was deemed to be against the exemption certificate. Consequently, the court allowed the writ petition, quashing and setting aside the impugned notice annexure 8.