2009 (5) TMI 949 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to orders passed by Sales Tax Tribunal Haryana regarding inclusion of sales to registered dealers in notional tax liability calculation.

Judgment Summary:

The High Court of Punjab & Haryana considered the challenge in multiple petitions regarding the inclusion of sales made to registered dealers in the calculation of notional sales tax liability. The Court referred to a recent case involving a similar issue and concluded that sales to registered dealers should not be included in the calculation of notional tax liability.

In the case of M/s Jai Durga Cotton Mills, the Court had already determined that sales to registered dealers should not be considered for notional tax liability calculation. Citing the judgment of the Supreme Court in the case of State of Haryana v. M/s Liberty Enterprises, the Court held that the matter is covered in favor of the dealer-petitioner and against the revenue.

The Court set aside the orders passed by the Tribunal and directed the respondents to deduct the sales made to registered dealers while calculating the taxable turnover. These sales should also not be included in the notional tax liability calculation. The Court found that the principles established in previous judgments are fully applicable to the present petitions, leading to the success of the petitions.

Based on the above reasoning and precedent, the Court disposed of the petitions in favor of the petitioners, setting aside the Tribunal's orders and directing the exclusion of sales to registered dealers from the calculation of notional tax liability.