2007 (4) TMI 655 - HC - VAT and Sales Tax

Summary

Issues:
Challenge against orders of Tribunal relating to assessment years 1993-94, 1994-95, and 1995-96 under the U.P. Trade Tax Act, 1948 regarding cancellation of compounding scheme applications.

Analysis:
The applicant, a civil contractor, applied under the compounding scheme for payment of one per cent tax on the amount received against works contract execution. The Assistant Commissioner accepted the application for the assessment years in question. However, the Deputy Commissioner initiated proceedings under section 10B, claiming the applications were beyond the stipulated time, rendering the applicant ineligible. The Tribunal dismissed the appeals against this decision.

The applicant argued that the applications were accepted within the extended period as per circulars issued by the Commissioner of Trade Tax. It was contended that once an agreement is reached between the applicant and revenue authorities under section 7D, it cannot be revised under section 10B unless there is concealment of facts or misrepresentation. The Court noted that the acceptance of the compounding scheme application constituted an agreement, and the Deputy Commissioner lacked authority to set it aside under section 10B. Citing precedent, the Court emphasized that orders under section 7D are not revisable under section 10B unless there is concealment or misrepresentation. As there were no such allegations, the revisions were allowed solely on this ground without delving into the timeliness of the applications as per circulars.

In conclusion, the Court allowed all revisions, setting aside the Tribunal's orders and the orders passed under section 10B for the concerned assessment years.