2008 (8) TMI 842 - HC - VAT and Sales Tax

Summary

Issues:
- Interpretation of Notification No. 2051 dated September 13, 1990 regarding exemption submission of form C under the Central Sales Tax Act.
- Applicability of Notification No. 1735 dated August 1, 1990 for exemption from Central sales tax on inter-State transactions of pulses.

Analysis:
The High Court of Allahabad heard the revision against the Trade Tax Tribunal's order related to the assessment years 1995-96 (Central). The Department questioned the legality of the Trade Tax Tribunal's decision to exempt the sale of pulses under the Central Sales Tax Act without submission of form C or F, as mandated by Notification No. 2051 dated September 13, 1990. The contention was that the dealer-opposite party should pay tax on the sale of pulses due to non-submission of the required forms. However, the dealer argued that the goods sold in inter-State transactions were tax-paid goods, citing Notification No. 1735 dated August 1, 1990 as the basis for exemption from Central sales tax.

Upon review, the High Court examined the relevant extract from Notification No. 1735, specifically concerning pulses, which stated that if the selling dealer proves that tax on such goods has been paid under the U.P. Sales Tax Act or the prescribed declaration form is furnished, then the dealer is exempt from Central sales tax. The Tribunal had already determined that the pulses sold in the inter-State sale were indeed tax-paid goods in the State of U.P. Consequently, the High Court found no illegality in the Tribunal's decision based on the notifications in question.

Ultimately, the High Court concluded that the revision lacked merit and summarily dismissed it. The judgment reaffirmed the validity of the Tribunal's order in light of the notifications and the factual findings regarding the tax-paid status of the goods sold in inter-State transactions.