2011 (3) TMI 1528 - HC - VAT and Sales Tax

Summary

Issues:
Claim of full exemption on sales of molasses to M/s. Vam Organics Limited, Gajraula based on recognition certificate under section 4B for the assessment years 1982-83 and 1983-84.

Analysis:
The revisions were filed against the Tribunal's order for the assessment years 1982-83 and 1983-84 regarding the denial of full exemption claimed on the turnover of sales to M/s. Vam Organics Limited, Gajraula. The applicant sold molasses to M/s. Vam Organics Limited in both years, claiming partial exemption in 1982-83 and full exemption in 1983-84. The assessing authority rejected the full exemption claim for 1982-83 as M/s. Vam Organics Limited only held a recognition certificate for partial exemption under section 4B of the Act. The Assistant Commissioner and the Tribunal upheld this decision, leading to the applicant filing applications for rectification under section 22, which were also rejected.

The applicant argued that M/s. Vam Organics Limited held a recognition certificate for full exemption, entitling them to claim the same on sales of molasses. However, the standing counsel contended that all authorities had confirmed M/s. Vam Organics Limited's certificate was for partial exemption only, making the applicant eligible for partial exemption. The High Court noted that the applicant failed to provide evidence of the full exemption certificate held by M/s. Vam Organics Limited. The court upheld the lower authorities' findings that the certificate was for partial exemption, concluding that rectification under section 22 was not applicable for factual investigations.

The High Court determined that the issue at hand required factual investigation, which was beyond the scope of rectification under section 22. Since the applicant did not present the necessary proof of the full exemption certificate, the court found no error in the lower authorities' decisions. Consequently, the revisions were dismissed, affirming the denial of full exemption on sales of molasses to M/s. Vam Organics Limited, Gajraula for the assessment years 1982-83 and 1983-84.