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2017 (11) TMI 524 - HC - VAT and Sales TaxRate of tax - sale of hosiery goods - whether taxable at 4% or 10%? - circular issued by the Government in G.O.Ms.No.39, Commercial Tax Department, dated 04.04.2005, says that the Government has granted waiver and reduced the rate of tax at 1% - Held that - since the petitioner has approached this Court challenging a notice proposing to levy tax at 10%, the matter has to be necessarily remanded to the Assessing Officer - petitioner are directed to file their objections to the impugned notices, wherein the petitioner is entitled to place reliance upon the circular issued by the Government in G.O.Ms.No.39 dated 04.04.2005 - petition allowed by way of remand.
Issues:
Challenge to tax notices proposing 10% tax rate on hosiery goods sales, reliance on government circular and appellate authority's order. Analysis: The petitioner challenged notices from the second respondent proposing a 10% tax rate on hosiery goods sales, which are generally taxable at 1% unless certain conditions apply. The petitioner cited a government circular granting a waiver and reducing the tax rate to 1%. Additionally, reference was made to an order by the Appellate Deputy Commissioner in a similar case, where the higher tax rates were struck down based on legal interpretations and notifications. The petitioner sought similar relief as granted in the mentioned case. However, the court noted that since the challenge was against a notice proposing a 10% tax levy, the matter needed to be remanded to the Assessing Officer for reconsideration in light of the cited circular and order. The court disposed of the writ petitions by directing the petitioner to file objections to the notices, allowing reliance on the government circular and the Appellate Authority's order. The respondent was instructed to consider these submissions and pass appropriate orders promptly and in accordance with the law. The judgment emphasized that no costs were to be imposed on either party, and the connected miscellaneous petition was closed.
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