2012 (4) TMI 740 - HC - VAT and Sales Tax

Summary

Issues involved: Petition for quashing reassessment order u/s 30.8.2002 and revision dismissal order u/s 18.6.2004 regarding commercial tax exemption under Madhya Pradesh Commercial Tax Act, 1994.

Relevant details:
- The petitioner, a steel company, sold goods to a purchasing dealer who sought exemption from commercial tax under the Act 1994.
- The State Government exempted certain registered dealers from tax payment based on specific conditions.
- The purchasing dealer provided a declaration for exemption, and the petitioner did not charge tax accordingly.
- The impugned orders imposed tax liability on the petitioner for not charging tax from the purchasing dealer, alleging ineligibility or violation of declaration conditions.
- The High Court noted that the petitioner was not obligated to investigate the validity of the declaration submitted by the purchasing dealer.
- A previous Division Bench order had quashed similar liability-imposing orders on the petitioner, citing section 21 of the Act 1994.
- The current judgment quashes the challenged orders but clarifies that the purchasing dealer remains liable if required by law.

In conclusion, the petition is allowed.