2009 (4) TMI 903 - SC - VAT and Sales Tax

Escapement of turnover from tax - whether the appellant-corporation could not provide any evidence in support of form F? Held that - In this case the appellant-corporation had furnished form F. In the said writ petition what was submitted by the appellant-corporation was that the notice for reassessment was wholly without jurisdiction and that the assessing authority could not have reopened the assessment in invoking rule 10 and rule 12(8) of the Central Sales Tax (Orissa) Rules in relation to transactions for which form F was furnished. Further the High Court has failed to consider the challenge to the order of reassessment by the appellant- corporation on the ground that it was a case of change of opinion. Lastly we find merit in the contention advanced on behalf of the appellant-corporation that looking to the magnitude of the matter including the demand the assessing authority ought to have given more time to the appellant-corporation for producing the relevant documents. In this case the impugned order of reassessment dated February 19 2007 is virtually an ex parte order.

Summary

In the Supreme Court of India judgment from 2009, the appellant, Indian Oil Corporation, was engaged in refining and selling petroleum products. The appellant moved high speed diesel (HSD) and superior kerosene oil (SKO) from Paradeep Port, Orissa to Haldia Port, West Bengal. The assessing authority found that the goods were moved on an inter-state sale basis, resulting in additional tax demand. The appellant challenged this decision in the Orissa High Court, which dismissed the writ petition. The Supreme Court found that the assessing authority's reassessment was unjustified and ordered the case to be remitted back for further consideration. The Court highlighted the importance of the form F declaration submitted by the appellant and emphasized the need for a fair reassessment process. The civil appeal was allowed with no costs.