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2010 (2) TMI 1084 - HC - VAT and Sales Tax
Issues Involved: Determination of taxable turnover under Central Sales Tax Act, 1956; Revision of assessing officer's order by Joint Commissioner u/s 34 of the Act.
Taxable Turnover Determination: The petitioner, a dealer supplying poly-zips for export, reported a total turnover of Rs. 6,96,341.82 and taxable turnover of Rs. 4,54,783.45 for the assessment year 1990-91. The assessing officer, however, determined the total turnover as Rs. 5,48,087, excluding a sum of Rs. 1,58,185. The petitioner was granted exemption u/s 5(3) of the Act where valid form H declarations were filed, but not where such forms were missing or defective. The appellate authority modified the assessing officer's order, which was later revised by the Joint Commissioner u/s 34 of the Act, leading to the present writ petition challenging the revision. Revision by Joint Commissioner: The Joint Commissioner revised the assessing officer's order, contending that excluding Rs. 1,58,185 was prejudicial to Revenue's interest. The petitioner had filed valid form H declarations showing export obligations and proof of actual export. The zips supplied were used in products exported by customers, as confirmed by export documents and declarations. The Joint Commissioner, however, held the petitioner liable for tax based on the exported products being plastic bags and cushion covers, not zips. The petitioner's compliance with section 5(3) requirements, including use of zips in exported goods, was not considered by the Joint Commissioner. Court's Decision: The Court found that the zips supplied by the petitioner were used in bags as per export orders without altering their identity. This satisfied the conditions of section 5(3) of the Act, warranting tax exemption. Even if the assessing officer erred in excluding Rs. 1,58,185 from turnover, it did not affect tax liability. The Court set aside the Joint Commissioner's order, allowing the writ petition and upholding the appellate authority's decision. No costs were awarded in the matter.
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