2014 (8) TMI 21 - HC - VAT and Sales Tax

Exemption of tax on stock transfer - petitioner has generated e-transit pass and not surrendered in the exit check post - Held that - petitioner is now having supporting documents and also the fact that the petitioner was not given an opportunity, I am inclined to set aside the impugned orders and the matters are remitted back to the respondent - Decided in favour of assessee.

Summary

Issues:
Challenge to impugned orders for assessment year 2011-2012 and 2012-2013, legality of orders passed without opportunity of hearing, eligibility for tax exemption on stock transfer, remittance of matter back to respondent for fresh consideration.

Analysis:
The petitioner filed Writ Petitions challenging the impugned orders for the assessment years 2011-2012 and 2012-2013, alleging that the respondent had issued a notice claiming the petitioner did not surrender e-transit passes at the exit check post, rendering him ineligible for tax exemption on stock transfer. The petitioner contended that despite providing necessary documents supporting interstate sales, the respondent passed the orders without granting a reasonable time or a personal hearing, which was deemed illegal. The respondent, represented by the Special Government Pleader, agreed to reconsider the matter if the petitioner produced Form-C and other relevant documents. The court, after considering the submissions, set aside the impugned orders and remitted the matters back to the respondent due to the petitioner now having supporting documents and the lack of opportunity granted initially.

The court allowed the Writ Petitions, annulling the impugned orders dated 14.5.2014, and instructed the petitioner to appear before the respondent without further notice for an inquiry on 26.06.2014. The petitioner was directed to bring objections, Form-C, lorry bills, and any other relevant supporting documents, cooperating with the respondent in producing additional documents if necessary. The respondent was tasked to reconsider the matter, taking into account the petitioner's objections, and pass orders in accordance with the law promptly. The connected Miscellaneous Petitions were closed without any costs incurred in the process.