2013 (12) TMI 502 - HC - VAT and Sales Tax

Constitutional validity of the entry tax - Violating of Article 301 of the Constitution of India - Re-assessment or exemption - Exemption notification dated 7.7.2004 - Held that - It is always open to the petitioners to satisfy the assessing authority by any cogent evidence other than the certificate of the assessing officer of the place where the business place of the principal is situate or From-F of the Central Sales Tax Act that the goods imported in the State of U.P. were brought in only for job work and that the finished goods were returned to the principals outside the State of U.P - It will be open to the petitioners to satisfy the assessing authority, if the assessments are pending in reassessments proceedings, or before the appellate authority that the petitioners had only carried out the job work on the imported goods and returned goods imported in the State, to its principals outside the State - Following decision of M/s. A.C.P.L. Jewels Private Ltd. vs. Union of India and others 2009 (12) TMI 898 - ALLAHABAD HIGH COURT - Decided in favour of Petitioner.

Summary

Issues:
Separation of Writ Tax No.1304 of 2007 from the judgment dated 23.12.2011, Quashing of assessment orders and notification of the Commissioner of the Trade Tax dated 7th February, 2001, Constitutional validity of the U.P. Tax on Entry of Goods into Local Areas Act, 2007, Imposition of entry tax violating Article 301 of the Constitution of India, Proof of imports only for job work, Assessment proceedings related to transactions of job-work and goods-returned, Reassessment proceedings involving transactions of job-work and goods-returned.

Analysis:

The petitioner sought to modify the judgment dated 23.12.2011 to separate Writ Tax No.1304 of 2007, arguing that the issue of quashing assessment orders and a notification of the Commissioner of Trade Tax were also involved. An interim order had been passed on 7th December, 2007, accepting arguments regarding exemptions under the U.P. Act of 2007 for job work of printing and binding of paper. The Court observed that petitioners need not produce certificates from Sales Tax Officers of other states if covered by the exemption notification. The Assessing Officer subsequently issued notices based on the judgment, leading to amendments challenging the Act's constitutional validity.

The Court had previously addressed the constitutional validity of the entry tax and its compliance with Article 301 of the Constitution. It was clarified that all issues related to re-assessment or exemption would follow the prescribed procedure under the Act. The satisfaction of the assessing authority regarding job work by petitioners was to be based on proof of imports solely for job work. Reference was made to a previous judgment outlining directions for assessment and reassessment proceedings involving job-work transactions and goods-returned.

Petitioners were advised to provide evidence to the assessing authority other than certificates from assessing officers or Form-F of the Central Sales Tax Act to demonstrate that imported goods were solely for job work and returned to principals outside the State. The Court emphasized that the issue had already been decided and petitioners could present evidence in pending assessments or reassessments to support their claims. The application was disposed of with these observations, allowing petitioners to satisfy the assessing authority with appropriate evidence.