2013 (2) TMI 653 - HC - VAT and Sales Tax

Summary

Issues Involved:
- Assessment of tax liability u/s 28 of the Madhya Pradesh Commercial Tax Act, 1994 based on false declaration of exemption.

The judgment addresses the case where the petitioner, engaged in manufacturing craft papers, claimed exemption from tax on sales to M/s. Quality Industry and M/s. Vindhya Corrugators, despite their exemption periods having expired. The Assistant Commissioner imposed a tax and penalty on the petitioner under section 28 of the Act of 1994 for under-assessment. The petitioner's revision was also dismissed.

The counsel argued that the tax liability lies with M/s. Quality Industry and M/s. Vindhya Corrugators, not the petitioner. However, it was established that the petitioner benefited from tax exemption based on false declarations regarding sales to the aforementioned entities, whose exemption periods had ended.

The judgment highlights that under section 28 of the Act of 1994, authorities can impose tax and penalty if there is under-assessment or escape from assessment of taxable transactions. Given the petitioner's false declaration to claim tax exemption, the imposition of tax and penalty was deemed appropriate by the court, leading to the dismissal of the petition.