2013 (4) TMI 687 - HC - VAT and Sales Tax

Summary

Issues involved: Interpretation of rule 28A(4) of the Haryana General Sales Tax Rules, 1975 regarding exemption from payment of tax on inter-State sales u/s 36 of the Haryana Value Added Tax Act, 2003.

Summary:
The appellant's appeal under section 36 of the Haryana Value Added Tax Act, 2003 was dismissed by the High Court. The appellant claimed exemption from tax on inter-State sales based on furnishing form ST14A under rule 28A(4) of the Haryana General Sales Tax Rules, 1975. The assessing officer initially allowed the deduction for exempted sales, but the revisional authority imposed tax on inter-State sales, which was affirmed by the Tribunal citing a previous judgment. The appellant argued that rule 28A(4) does not exclude inter-State sales from exemption, but the court disagreed based on a previous ruling in Casio India case [2006] 144 STC 4 (P&H). The court held that inter-State sales are not exempted under rule 28A(4)(c) and dismissed the appeal, stating no substantial question of law arises for consideration.

In conclusion, the High Court upheld the imposition of tax on inter-State sales, ruling that rule 28A(4) does not exempt such sales from taxation, based on the interpretation provided in the Casio India case [2006] 144 STC 4 (P&H). The appellant's claim for exemption from tax on inter-State sales was denied, and the appeal was dismissed accordingly.