2020 (2) TMI 124 - HC - VAT and Sales Tax

Levy of sales tax - sale of medicines - defence given by the revisionist was that he is not selling medicines from the said dispensary, but the said medicines, surgical equipments bandages etc. are used for inhouse patients and therefore there being no element of Sale of the medicines - HELD THAT - On a categorical finding of fact have been recorded, from whereby it is found that they have held that the medicines from the medical store were actually being sold by the revisionist for which no sales tax has been deposited to the department, thereby there is clear evasion of tax for which the revisionist has rightly been put to tax and penalty thereon. Revision dismissed.

Summary

Issues involved:
Tax assessment on sale of medicines by a nursing home's dispensary.

Analysis:
1. Background: The revisionist, running a nursing home, appealed against the Commercial Tax Tribunal's judgment rejecting their appeal against the tax levied on the sale of medicines dispensed by the nursing home's dispensary to in-house patients.

2. Contentions: The revisionist argued that the dispensary was an integral part of the nursing home, only providing medicines to in-house patients without separate charges. They claimed that no tax should be imposed on the consolidated bills issued to patients covering the cost of medicines.

3. Assessment and Appeals: The Assessing Authority levied tax on the sale of medicines, which was partially reduced by the First Appellate Authority. The revisionist, aggrieved by the order, appealed further, claiming arbitrariness and lack of consideration of their documents and replies.

4. Tribunal's Decision: The Tribunal upheld the tax imposition, considering the statements and documents seized during a survey, indicating the sale of medicines by the revisionist. The Tribunal found no evidence to support the revisionist's claim of not separately charging for medicines.

5. Court's Analysis: The Court reviewed the Tribunal's findings, emphasizing the lack of evidence provided by the revisionist to prove that medicines were not sold separately. The Court noted that the revisionist's arguments lacked merit, leading to the dismissal of the revision.

6. Final Decision: After thorough consideration, the Court upheld the Tribunal's decision, concluding that the revision lacked merit and dismissed the appeal. The Court found no grounds to support the revisionist's claims regarding the tax assessment on the sale of medicines by the nursing home's dispensary.