2013 (1) TMI 694 - HC - VAT and Sales Tax

Summary

Issues Involved:
The issues involved in this case are the correct rate of VAT applicable to dryer felts, whether the goods were declared goods under the Central Sales Tax Act, and the entitlement of the appellant to avail of the concessional rate of VAT by furnishing form VAT D-1.

Correct Rate of VAT Applicable to Dryer Felts:
The appellant argued that the dryer felts were "declared goods" under the Central Sales Tax Act in preceding and subsequent years, hence liable to pay VAT at four per cent, not at 10 per cent as ordered by the Tribunal. However, the court found that during the relevant assessment years, the goods (dryer felts) were not declared goods under the Central Act. Consequently, the appellant is liable to pay VAT at the higher rate of 10 per cent as per the Act. The court concluded that no substantial question of law arose for consideration in this regard.

Entitlement to Avail Concessional Rate of VAT:
The appellant contended that they were entitled to furnish form VAT D-1 to avail of the concessional rate of VAT. However, the court noted that this argument was not raised before the revisional authority or the Tribunal. The appellant attempted to introduce this argument through a review application, but since it was not raised before the relevant authorities earlier, the court held that the appellant cannot raise this question of fact for the first time in the present appeal. The court found that no question of law arose from the Tribunal's order but granted the appellant liberty to raise such questions before the appropriate authorities as permissible by law.