2013 (5) TMI 767 - HC - VAT and Sales Tax

Summary

Issues involved:
The issues involved in the judgment are the quashing of annexure P8, exemption of PVC pipes from tax under the Haryana General Sales Tax Act, and the availability of alternative statutory remedy for the petitioner.

Quashing of Annexure P8:
The petitioner, a registered dealer under the Haryana General Sales Tax Act engaged in manufacturing and sale of PVC pipes, sought the quashing of annexure P8 which was deemed illegal and without jurisdiction. The petitioner argued that PVC pipes are exempt from tax under entry 21 of Schedule B annexed to the Act, which exempts agricultural implements from tax. A notification issued on May 10, 1995 further exempted the sale of components of agricultural pumping sets from tax. Despite the petitioner's contention that PVC pipes are exempt from tax as per the notification, a notice was issued on February 14, 1997, demanding tax payment for the PVC pipes sold. The impugned communication, annexure P8, was a response to the petitioner's submission regarding the exemption of PVC pipes from tax. The court refrained from quashing annexure P8, stating that since the assessment had been finalized by the Assessing Authority and was appealable under the Act, the petitioner had an effective alternative remedy available.

Exemption of PVC Pipes from Tax:
The petitioner claimed that PVC pipes are exempt from tax under the Haryana General Sales Tax Act based on the relevant provisions and notifications. The petitioner's argument was centered around the exemption granted to agricultural implements and components of agricultural pumping sets from tax. Despite the petitioner's reliance on the notification exempting certain items from tax, the Assessing Authority proceeded to finalize the assessment against the petitioner for the sale of PVC pipes. The court acknowledged the petitioner's contention but emphasized that the assessment order was appealable under the Act, providing the petitioner with a statutory remedy to challenge the assessment.

Availability of Alternative Statutory Remedy:
In light of the finalized assessment by the Assessing Authority, the court highlighted that the petitioner had an effective alternative remedy available under the provisions of the Haryana General Sales Tax Act, 1973. The court refrained from exercising its writ jurisdiction at that stage, dismissing the petition but granting the petitioner the liberty to avail of the statutory remedy provided by law. This decision underscored the importance of following the statutory appeal process available to the petitioner to address any grievances regarding the assessment of tax liability on PVC pipes sold by the petitioner.