2017 (1) TMI 195 - HC - VAT and Sales Tax

Sub-contracting - exemption certificate - natural justice - Held that - adequate opportunities have been granted to the Assessee and if the assessee in all these years could not procure exemption certificate by which such benefits were available then the courts cannot be held responsible and there has to be a finality in the matters. In my view no case is made out for interference of this court as no question of law can be said to arise - denial of exemption justified - petition dismissed - decided against petitioner.

Summary

Issues:
Challenge against the order passed by the Rajasthan Tax Board regarding exemption certificates for sub-contractors in a case of civil construction work.

Analysis:
The judgment pertains to a case where the petitioner, a Government of Rajasthan undertaking engaged in civil construction work, claimed exemption certificates for payments made to sub-contractors to avoid double taxation. The Assessing Officer initially rejected the claim due to lack of evidence, leading to an appeal before the Deputy Commissioner (Appeals) and subsequently the Tax Board. The Tax Board set aside the previous orders and directed a fresh assessment by the Assessing Officer to reconsider the issue based on the evidence provided. However, an application for rectification under Section 37 was later rejected by the Tax Board on the grounds of no apparent mistake in the earlier order.

The petitioner argued that they had indeed obtained exemption certificates from sub-contractors, which were crucial for consideration by the authorities. The certificates were submitted to the Tax Board, and it was highlighted that the records confirmed the availability of these certificates. Conversely, the respondent contended that despite multiple opportunities given over a decade, the petitioner failed to produce the exemption certificates, leading to the consistent findings of the Tax Board and Deputy Commissioner (Appeals) against the petitioner.

In the final judgment, the court upheld the decision of the Tax Board, emphasizing the importance of providing acceptable evidence, such as exemption certificates, to support claims of double taxation. The court noted that despite several chances granted to the petitioner to furnish evidence, no material or exemption certificates were produced over almost 16 years. The court highlighted the need for finality in legal matters and concluded that no grounds for interference existed as no question of law was raised. Consequently, the revision petition was dismissed for lacking merit, with the court finding no perversity, infirmity, or illegality in the impugned order.