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2015 (3) TMI 475 - HC - VAT and Sales Tax


Issues Involved:
- Levy of sales tax on vend fee
- Levy of purchase tax under section 7A on purchase of empty bottles from unregistered dealers
- Penalty levied under section 12(3) and 12(5)(iii) of the Tamil Nadu General Sales Tax Act

Levy of Sales Tax on Vend Fee:
The assessee filed a tax case against the order of the Tamil Nadu Sales Tax Appellate Tribunal for assessment years 1986-87 to 1989-90. The questions raised related to the levy of sales tax on vend fee, purchase tax under section 7A on empty bottles from unregistered dealers, and penalties under sections 12(3) and 12(5)(iii) of the Tamil Nadu General Sales Tax Act. The court noted that the vend fee inclusion in turnover was covered by a previous decision in favor of the assessee. Therefore, the question of sales tax on vend fee did not arise, leading to the deletion of penalties related to vend fee.

Levy of Purchase Tax under Section 7A:
Regarding the purchase tax on empty bottles, the court referred to a previous decision against the assessee. The court confirmed the assessment under section 7A of the Tamil Nadu General Sales Tax Act for the turnover on the purchase of empty bottles from unregistered dealers. The penalties related to this purchase tax were also canceled based on the court's decision.

Penalty Levied under Section 12(3) and 12(5)(iii):
The court considered the levy of penalties on excise duty inclusion in turnover. The assessee argued that there was a genuine dispute regarding the excise duty's inclusion until a court decision clarified the matter in 1989. The court accepted this argument and canceled the penalties related to excise duty inclusion. The court also noted that the dispute had been ongoing since 1987-88, and based on previous decisions, penalties under sections 12(3) and 12(5)(iii) were deleted. Consequently, the court partly allowed the Tax Case (Revisions) and closed the related motion.

This detailed analysis of the judgment provides insights into the court's decisions on the issues of sales tax on vend fee, purchase tax under section 7A, and penalties levied under the Tamil Nadu General Sales Tax Act.

 

 

 

 

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