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2015 (10) TMI 973 - HC - VAT and Sales TaxDenial of exemption claim - Whether exemption from tax granted on the sale and purchase of water pumps and/or diesel engines having capacity up to 10 horse power (HP) under Notification No. F.4(1)FD/TaxDiv/2000-361 dated June 19, 2000 under section 15 of the Rajasthan Sales Tax Act, 1994 (hereinafter the Act of 1994 ) was general or conditional in nature - Held that - a different view cannot be taken in this revision petition directed against the decision of the Rajasthan Tax Board as the decision of the Rajasthan Tax Board Jaipur on the same issue has attained finality. The honourable Supreme Court in the case of Municipal Corporation of City of Thane v. Vidyut Metallics Ltd. 2007 (9) TMI 399 - SUPREME COURT OF INDIA has held that even though each assessment year in respect of tax liability is an independent event as against other year, yet if the nature and character of the transaction remains the same, the character of the transaction earlier by the orders of the court binds in subsequent year with regard to the nature and character of the subsequent similar transaction. The same position has also been recognized albeit impliedly by the honourable Supreme Court in the case of Southern Sea Foods Limited v. Joint Commissioner of Income-tax, Chennai 2009 (3) TMI 988 - SUPREME COURT . - court cannot take a contrary view in respect of a similar transaction/exemption in another year even in the best case scenario for the Revenue-lest contradictory orders in respect of the same transaction (in nature and character) qua different years pertaining to the same assessee are passed. - Decided against Revenue.
Issues involved:
1. Dismissal of appeals by Deputy Commissioner (Appeals) and subsequent allowance by Rajasthan Tax Board. 2. Nature of exemption from tax on sale and purchase of water pumps and/or diesel engines. 3. Revision petition filed by Revenue against Rajasthan Tax Board decision. 4. Finality of earlier decision by the court on the same issue. 5. Application of Supreme Court judgments on the nature and character of transactions. Issue 1: Dismissal of appeals by Deputy Commissioner (Appeals) and subsequent allowance by Rajasthan Tax Board The Deputy Commissioner (Appeals) dismissed two appeals filed by the assessee against the orders of the assessing authority. The respondent assessee then filed second appeals before the Rajasthan Tax Board, which allowed both appeals. The Tax Board noted that the points in the appeals were similar and related to the same assessee. The main issue before the Tax Board was whether the exemption from tax on water pumps and/or diesel engines was general or conditional in nature. The Tax Board held that the exemption was general, entitling the assessee to exemption even on inter-State sales under the Central Sales Tax Act. Issue 2: Nature of exemption from tax on sale and purchase of water pumps and/or diesel engines The key issue was whether the exemption granted on the sale and purchase of water pumps and/or diesel engines was general or conditional. The Tax Board determined that the exemption was general in nature as it related to a specific category of goods. Therefore, no tax was leviable on the respondent-assessee even on inter-State sales of the specified goods. Issue 3: Revision petition filed by Revenue against Rajasthan Tax Board decision A revision petition was filed by the Revenue against the decision of the Rajasthan Tax Board in one of the appeals. However, the earlier revision petition filed by the Revenue on a similar issue had been dismissed for non-prosecution, and the decision had attained finality over the years. The Revenue sought to re-agitate the same issue in the present revision petition. Issue 4: Finality of earlier decision by the court on the same issue The court emphasized that since a previous decision on a similar issue had attained finality due to the dismissal of the Revenue's earlier revision petition, a different view could not be taken in the present revision petition. The court cited Supreme Court judgments to support the principle that the nature and character of transactions remain binding in subsequent similar transactions. Issue 5: Application of Supreme Court judgments on the nature and character of transactions The court relied on Supreme Court judgments to establish that the character of a transaction determined in an earlier decision binds in subsequent years for similar transactions. The court concluded that the decision of the Tax Board on the nature and character of the exemption had attained finality, and a contrary view could not be taken in the present revision petition. Therefore, the revision petition was dismissed as without force.
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