9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (1) TMI 61 - HC - VAT and Sales TaxClassification of goods - inter-State sales of mobile phones - C-Forms - whether unclassified goods in terms of sub-item 15 of Item 39 of IV Schedule of the Telangana VAT Act, 2005 read with Section 9(2) of the Central Sales Tax Act - HELD THAT - Respondents could not explain how the 1st respondent omitted to deal with the contention about the appropriate rate of tax to be collected under CST Act, 1956 for mobile phones being sold by the petitioner in inter-State sales not covered by C-Forms though it was specifically raised in the objections dt.28.11.2019 filed by the petitioner to the show-cause notice dt.04.06.2019 - He fairly stated that it is desirable that the matter be remitted back to the 1st respondent to consider this point since he had omitted to consider the same while passing the impugned Assessment Order. Petitioner also requested that the matter be remitted back to the 1st respondent for fresh consideration and that the petitioner be permitted to raise not only the issue about the rate of tax but also the issue of time bar of assessment for the period July, 2015 to January, 2016. The matter is remitted back to the 1st respondent for fresh consideration - Petition allowed by way of remand.
Issues:
Assessment Order under Central Sales Tax Act, 1956 for the assessment year 2015-16 challenged by the petitioner. Non-consideration of specific contentions by the 1st respondent. Barred by limitation for the tax period July 2015 to January 2016. Analysis: The petitioner, a private limited company engaged in the sale of mobile phones and accessories, challenged the Assessment Order AO No.51883 dt.31.03.2020 passed by the 1st respondent for the assessment year 2015-16 under the Central Sales Tax Act, 1956. The petitioner contended that the 1st respondent proposed to levy sales tax at 14.5% on inter-State sales of mobile phones not covered by C-Forms, contrary to the petitioner's assertion of tax liability at 5% under the Telangana VAT Act, 2005. The petitioner raised objections, supported by relevant documents, emphasizing the 5% tax rate. However, the impugned Assessment Order was issued without addressing the petitioner's contentions regarding the tax rate, leading to a challenge of non-consideration by the petitioner. The counsel for the petitioner argued that the failure of the 1st respondent to address the tax rate issue, despite it being raised by the petitioner, invalidated the Assessment Order. Reference was made to Circular instructions clarifying the tax rate for mobile phones, emphasizing that collecting tax at 14.5% could result in legal consequences for the petitioner. Additionally, it was contended that the Assessment Order was time-barred for the period July 2015 to January 2016 under the CST (Telangana) Rules, raising concerns about the legality of the assessment process. During the proceedings, the Special Counsel for Commercial Taxes representing the respondents could not provide a satisfactory explanation for the omission in addressing the tax rate contention raised by the petitioner. Acknowledging the oversight, he suggested remitting the matter back to the 1st respondent for a reconsideration of the tax rate issue. Consequently, the Court allowed the Writ Petition, setting aside the impugned Assessment Order and remitting the matter to the 1st respondent for fresh consideration. The petitioner was granted the opportunity to submit additional objections within a specified timeframe, including arguments on the limitation of assessment for the relevant tax period. The 1st respondent was directed to consider all objections and pass a new Assessment Order within the prescribed timeline, ensuring compliance with the law. In conclusion, the Court's decision to remit the matter for fresh consideration addressed the concerns raised by the petitioner regarding the tax rate issue and the limitation period for assessment. By allowing the petitioner to present additional objections and ensuring a lawful assessment process, the judgment aimed to uphold procedural fairness and legal compliance in the taxation matter.
|
