2012 (9) TMI 904 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to sales tax revision petitions based on orders passed by Tax Board and Deputy Commissioner (Appeals) under section 84 of the Rajasthan Sales Tax Act, 1994.

Summary:
The respondent-assessee was granted 100% exemption under the Rajasthan Sales Tax Incentive Scheme, 1987 and Central Sales Tax Incentive Scheme by the DLSC. However, the assessing authority assessed tax at 75% exemption rate, imposed interest, and penalty under section 61 of the Act for delay in filing returns. The Deputy Commissioner (Appeals) remanded the matter to provide a hearing on the penalty issue. The Tax Board held that the assessing authority cannot reduce the exemption granted by DLSC, citing legal precedents including Motilal Padampat Sugar Mills Co. Ltd. v. State of U.P. The High Court upheld the Tax Board's decision, stating that there was no error in the impugned order and no substantial question of law emerged for consideration. Consequently, all revision petitions were dismissed.