Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2015 (3) TMI HC This

  • Login
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2015 (3) TMI 1193 - HC - VAT and Sales Tax


Issues:
1. Jurisdictional conflict between the Andhra Pradesh General Sales Tax Act (APGST Act) and the Central Sales Tax Act (CST Act) for the assessment year 1997-98.
2. Validity of the demand under the CST Act for a turnover already assessed under the APGST Act.
3. Legality of the garnishee notice issued under section 17 of the APGST Act for recovery of tax.

Analysis:
1. The petitioner, a registered dealer under both the APGST Act and the CST Act, was initially assessed by respondent No. 3 under the CST Act for the assessment year 1997-98, resulting in a demand of &8377; 10,18,000 on export sales of cashew nuts. Subsequently, the assessment order was revised by the Deputy Commissioner, bringing the entire turnover under the APGST Act and assessing tax accordingly. The petitioner contended that the same turnover cannot be subject to assessment under both Acts simultaneously.

2. The counter-affidavit stated that a garnishee notice was issued for recovery of the tax demanded under the CST Act, despite the revised assessment under the APGST Act. The court observed that once the turnover was brought under the APGST Act and tax was determined, it could not be subjected to assessment again under the CST Act. The appellate authority had confirmed the revised assessment under the APGST Act, thereby precluding further assessment under the CST Act for the same turnover.

3. In light of the revised assessment order bringing the entire turnover under the APGST Act and the confirmation by the appellate authority, the court disposed of the writ petition by directing the respondents to refrain from enforcing the demand under the CST Act. The garnishee notice issued for recovery of tax on the same turnover was quashed. The judgment clarified the exclusivity of the revised assessment under the APGST Act, preventing dual taxation on the same turnover.

Conclusion:
The judgment resolved the jurisdictional conflict between the APGST Act and the CST Act for the assessment year 1997-98, affirming the exclusive applicability of the revised assessment under the APGST Act and prohibiting further enforcement under the CST Act. The legality of the garnishee notice issued for tax recovery was addressed, emphasizing the finality of the revised assessment and the inapplicability of dual taxation on the same turnover.

 

 

 

 

Quick Updates:Latest Updates