2008 (7) TMI 918 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of tax liability under different notifications for the assessment year 1991-92.

Analysis:
The case involved a dispute regarding the tax liability of a dealer for the assessment year 1991-92 based on the purchase and sale of gunny bags. The dealer disclosed purchases made outside the State of U.P. and admitted tax liability at one per cent under a specific notification. However, the assessing authority disagreed, citing an amendment to the notification that increased the tax rate to four per cent. The first appellate authority upheld this decision, leading the dealer to file a second appeal before the Trade Tax Tribunal, which ruled in favor of the dealer based on the grounds that the amended notification was not made public, thus not applicable for the assessment year in question.

The questions of law raised in the memo of revision focused on whether the Tribunal was legally justified in determining the tax liability at one per cent despite the amendment to the notification increasing the tax rate. The learned standing counsel referenced a previous decision of the court, Commissioner of Sales Tax v. Jagannath Dudadhar, which established that a notification is deemed published from the date mentioned in it, regardless of public availability. The court, following this precedent, held that the Tribunal's view that the notification was not deemed published for the assessment year 1991-92 was legally incorrect. Consequently, the court set aside the Tribunal's order and ruled in favor of the Revenue, stating that the dealer was liable to pay tax at the rate of four per cent as per the amended notification dated November 30, 1990, effective from December 1, 1990.

In conclusion, the High Court allowed the revision, deciding in favor of the Revenue and against the dealer-opposite party. The court emphasized the legal interpretation of notification publication dates and their impact on tax liabilities, ultimately upholding the applicability of the amended notification despite public availability concerns.