2010 (3) TMI 1015 - HC - VAT and Sales Tax

Summary

Issues involved: Interpretation of Haryana Government Notification on tax levy for sun-baked bricks, legality of interest levied under section 25(5) of Haryana General Sales Tax Act, entitlement for sales tax rebate.

Interpretation of Haryana Government Notification: The court held that unburnt bricks did not fall under the purview of the notification dated May 5, 1973, which prescribed tax levy at the first point for sale of bricks. It was further established that sun-baked/dried bricks were also not covered by the said notification, ruling against the assessee and in favor of the Revenue.

Legality of Interest Levied: The court decided in favor of the assessee on the issue of interest levied under section 25(5) of the Act, citing judgments in J.K. Synthetics Ltd. v. Commercial Taxes Officer and Frick India Limited v. State of Haryana as supporting precedents.

Entitlement for Sales Tax Rebate: Due to the court's ruling on the first issue, the question regarding the appellant's entitlement for a sales tax rebate became redundant and was answered against the assessee.

Conclusion: The court disposed of the eleven references accordingly, providing clarity on the interpretation of the notification and the legality of interest levied under the relevant sections of the Haryana General Sales Tax Act.