2010 (11) TMI 1068 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to order of sales tax Appellate Tribunal regarding purchase tax on fly ash, estimation of sales of gunny bags, transportation charges, and raising additional ground before Tribunal.

Purchase tax on fly ash: Petitioner concedes purchase tax on fly ash from Tamil Nadu Electricity Board. Levy of purchase tax on fly ash upheld.

Estimation of sales of gunny bags: Petitioner lacks documentary evidence for gunny bags. Purchase tax on gunny bags confirmed.

Transportation charges: Division Bench precedent applied to set aside purchase tax on transportation charges for fly ash.

Raising additional ground before Tribunal: Petitioner seeks to raise additional ground for additional sales tax under Section 3(4) of Act. Tribunal initially declines, citing failure to raise issue before lower authorities. Division Bench precedent supports petitioner's right to raise additional ground. Tribunal empowered to permit raising of additional grounds under statutory provisions.

Additional sales tax under Section 3(4): Special Tribunal decision cited to support petitioner's position that no additional sales tax is leviable under provisos of Act in respect of tax paid under Section 3(4). Tribunal sustains appellant's stand on non-leviability of additional sales tax.

Conclusion: Writ petition partly allowed, no costs. Tribunal's decision on additional sales tax set aside based on Special Tribunal decision.