2018 (10) TMI 1410 - HC - VAT and Sales Tax

Imposition of penalty - section 56 of the VAT Act - penalty imposed on the ground that it was not entitled to issue Form-C for purchase of dumper , yet it has issued Form-C - Defence of the assessee was that purchase of dumper, therefore, was clearly permitted in view of the registration certificate and that penalty proceedings are unsustainable. Held that - In view of the fact that the registration certificate has not been taken note of, which clearly shows that the registration of the assessee under the Central Sales Tax Act is also for purchase of dumper, the argument advanced on behalf of the assessee that the tribunal has failed to take note of the materials brought on record is liable to be accepted. The order of tribunal dated 11.10.2018 is not liable to be sustained inasmuch as it omits to take note of the material facts/documents brought on record - matter is remitted to tribunal for a fresh consideration of cause.

Summary

Issues:
1. Validity of penalty imposed for issuing Form-C for purchase of 'dumper' without entitlement.

Analysis:
The judgment concerns a revision against an order of the Commercial Tax Tribunal affirming the imposition of a penalty on the assessee for issuing Form-C for the purchase of a 'dumper' without entitlement. The tribunal upheld the penalty based on the ground that the assessee was not entitled to purchase a dumper. However, the assessee relied on a registration certificate issued under the Central Sales Tax Act, which specifically included 'dumper' in column 16(a. The defense argued that the purchase of the 'dumper' was permitted under the registration certificate, making the penalty proceedings unsustainable.

The court noted that the tribunal failed to consider the registration certificate, which clearly indicated that the assessee was registered for the purchase of a 'dumper' as well. Additionally, the court highlighted that the same registration certificate had been used in proceedings related to entry tax to drop the imposition of entry tax. Despite bringing this to the tribunal's attention, it was not considered in the decision. Consequently, the court quashed the tribunal's order dated 11.10.2018, emphasizing that the tribunal had overlooked crucial evidence and documents on record. The matter was remitted back to the tribunal for a fresh consideration, taking into account the material facts and documents presented.

In conclusion, the court disposed of the revision by setting aside the tribunal's order and instructing a reevaluation of the case with proper consideration of the registration certificate's contents and its implications on the entitlement to purchase a 'dumper.'