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2020 (11) TMI 20 - HC - VAT and Sales Tax


Issues Involved:
1. Jurisdiction of the Assessing Officer under the RVAT Act, 2003 to reopen assessments under RIPS, 2003.
2. Applicability of RVAT Act, 2003 provisions to RIPS, 2003.
3. Interpretation of 'tax payable' under the CST Act for subsidy calculations.
4. Retrospective application of amendments to RIPS, 2003.

Detailed Analysis:

1. Jurisdiction of the Assessing Officer under the RVAT Act, 2003 to reopen assessments under RIPS, 2003:
The primary issue was whether the Assessing Officer had the jurisdiction to reopen assessments under RIPS, 2003 using Section 26 of the RVAT Act, 2003. The Tax Board concluded that the RVAT Act, 2003 provisions were not applicable to RIPS, 2003, thus invalidating the reopening of the assessments. The court affirmed this conclusion, emphasizing that the power to reopen assessments was not conferred under RIPS, 2003, and any exercise of such power by the Assessing Officer was unsustainable.

2. Applicability of RVAT Act, 2003 provisions to RIPS, 2003:
The court examined whether the RVAT Act, 2003 provisions, specifically Sections 26 and 33, were applicable to RIPS, 2003. It was noted that initially, RIPS, 2003 did not include provisions for reopening or rectifying orders under the RVAT Act, 2003. An amendment in 2008 introduced Section 33 for rectification of mistakes, but no provision for reopening assessments was included. The subsequent schemes (RIPS, 2010 and RIPS, 2014) explicitly included provisions for the applicability of the RVAT Act, 2003, highlighting the absence of such provisions in RIPS, 2003. The 2018 amendment to RIPS, 2003, which introduced Clause 9A, made the RVAT Act, 2003 applicable from 1/7/2017, reinforcing that prior to this date, the RVAT Act, 2003 was not applicable to RIPS, 2003.

3. Interpretation of 'tax payable' under the CST Act for subsidy calculations:
On the merits of the dispute, the Tax Board determined that the 'partial exemption' granted under the CST Act was not part of the 'tax payable.' This interpretation was crucial for calculating the interest subsidy under RIPS, 2003. The court noted that the Tax Board's finding on this issue was not necessary for adjudication once it was established that the Assessing Officer lacked jurisdiction. However, the court left open the possibility for the petitioner department to raise this issue in future cases.

4. Retrospective application of amendments to RIPS, 2003:
The court addressed the argument regarding the retrospective application of the 2018 amendment to RIPS, 2003. It was clarified that the amendment was explicitly stated to be effective from 1/7/2017, and there was no basis for applying it retrospectively beyond this date. The court cited legal precedents to support the principle that a subsequent enlargement of rights cannot revive a barred right unless expressly stated. Therefore, the provisions of the RVAT Act, 2003 could not be applied to RIPS, 2003 assessments conducted before 1/7/2017.

Conclusion:
The court dismissed the revision petitions, affirming the Tax Board's findings on the lack of jurisdiction of the Assessing Officer and the inapplicability of the RVAT Act, 2003 to RIPS, 2003 at the relevant time. The court also clarified that the merits of the reassessment issue could be raised in future cases by the petitioner department. No order as to costs was made.

 

 

 

 

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