2013 (6) TMI 139 - HC - VAT and Sales Tax

Hardship in following VAT Rules - filing of Forms - Authorization to re-open the assessment - amendment in U.P. Trade Tax Rules, 1948, specifically in Rules 12-A, 12-B and 12-C. - held that - the rule is mandatory and the filing of form as per the prescribed procedure is also mandatory. - the aforesaid Rules 12-A, 12-B and 12-C cannot be read down so as to enable a dealer to file Form IIIB in respect of transaction which took place beyond two years of the assessment year in which the form was issued. No doubt some dealer may suffer some hardship by the impugned rules, but it is well settled that equity has no place in taxing laws. It is also well settled that a statutory rule cannot be said to be unreasonable merely because in a given case it operates harshly. - Decided against the assessee.

Summary

Issues:
Challenge to order of authorization under U.P. Trade Tax Act for assessment year 2006-07.

Analysis:
The petitioner, a partnership firm engaged in trading of hardware, marbles, and sanitary-ware items, challenged the order of authorization passed by the Additional Commissioner, Grade-I, Commercial Tax under Section 21(2) of the U.P. Trade Tax Act for the assessment year 2006-07. The petitioner sold goods to M/s Hindalco Industries Limited at a concessional rate of tax, supported by Form-IIIB. Rectification proceedings were initiated due to the form's validity period exceeding two years. The Assessing Officer initially dropped the rectification proceedings, but later, a notice for reassessment was issued under Section 21(2) of the Act. The Additional Commissioner granted permission for reassessment, leading to the present writ petition.

The respondent-department contended that the impugned order considered the petitioner's reply and the Assessing Officer's proposal. The genuineness of Form IIIB was not disputed, only its validity. The petitioner argued that there was no fault on their part, relying on a Division Bench decision. The High Court observed that the writ petition challenged the grant of permission to reopen assessment, noting the amendments in U.P. Trade Tax Rules. Referring to previous decisions, the Court emphasized the mandatory nature of the rules and filing procedures for Form IIIB. It was held that the amendment in rules rendered the previous rulings inapplicable, emphasizing the changed law concerning Form IIIB filing.

The Court concluded that the ruling cited by the petitioner no longer applied due to the rule amendments. The Assessing Authority was directed to consider all petitioner contentions on merit in accordance with the law. Consequently, the Court found no merit in the writ petition and dismissed it without costs.