2019 (4) TMI 985 - HC - VAT and Sales Tax

Validity of assessment order - Section 58 of U.P. Value Added Tax Act, 2008 - HELD THAT - The Tribunal recorded a categorical finding that for purchasing J.C.B. Machine, Form-C was issued. The Tribunal further recorded finding that the Form-C had been issued by the assessing authority itself and for the mistake of the assessing authority, the assessee cannot be held liable. Tribunal further held that it was not a case of false representation and the machine has been purchased against Form-C and there was no false representation. The finding so recorded by the Tribunal is finding of fact and no interference is required. Revision dismissed.

Summary

Issues:
Challenge to order passed by Commercial Tax Tribunal regarding penalty imposition for unauthorized purchase of J.C.B. Machine against Form-C.

Analysis:
The case involves a revisionist challenging an order passed by the Commercial Tax Tribunal, Kanpur Division, Kanpur, regarding the imposition of a penalty for the unauthorized purchase of a J.C.B. Machine valued at &8377; 21,60,000/- against Form-C. The revisionist, engaged in manufacturing and sale of bricks, contended that the registration granted for resale authorized the purchase of various items, including pipes, fittings, cement, coal, and coke. However, during assessment, it was discovered that the dealer had purchased the J.C.B. Machine, which was not within the authorized scope of purchases against Form-C. Consequently, the assessing authority imposed a penalty of &8377; 4,69,800/-, later reduced to &8377; 3,13,200/- on appeal.

Upon appeal by both the assessee and the revenue, the Tribunal allowed the appeal, setting aside the penalty imposition. The Tribunal found that Form-C was indeed issued for purchasing the J.C.B. Machine, and the mistake in issuing the form lay with the assessing authority. The Tribunal emphasized that there was no false representation involved in the purchase, as the machine was acquired against Form-C as per the authorization granted. The Tribunal's findings were deemed factual, and no interference was warranted in the matter.

In conclusion, the High Court dismissed the revision, holding it devoid of merits. The Court upheld the Tribunal's decision, emphasizing that the purchase of the J.C.B. Machine against Form-C was authorized, and the assessing authority's error did not render the assessee liable for penalty. The judgment underscores the importance of adherence to authorized purchase mechanisms and highlights the significance of factual findings in such matters.