2013 (11) TMI 1659 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to communication directing VAT deduction on gross amount in works contract.

Judgment Summary:

Issue 1: Challenge to communication directing VAT deduction on gross amount

The petitioner challenged a communication directing the deduction of VAT on the gross amount of bills in a works contract. The High Court acknowledged that tax should be paid only on the taxable turnover as per Sections 4 and 5 of the Tripura Value Added Tax. The court quashed the order and directed the assessing officer to assess any tax payable by the petitioner on the value of the property transferred during the works contract execution.

The assessment should align with the observations of the Apex Court in Gannon Dunkerley and Co. Vs. State of Rajasthan and this Court in Biplab Kr. Ghosh Vs. Union of India. The petitioner was instructed to cooperate with the Assessing Officer for timely completion of assessment by 28th February, 2014. Any refundable amount should be refunded with interest as per the provisions of the Tripura Value Added Tax by 30th April, 2013. Both parties were warned to comply with the order promptly, and any delay tactics would result in serious action.

The petitioner was required to appear before the Assessing Authority with a copy of the judgment on 10th December, 2013. The writ petition was disposed of accordingly.