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2019 (1) TMI 490 - HC - VAT and Sales TaxImposition of tax - stock transfers made in the course of inter-state trade and commerce - scope of State Legislature - violation of Entry 98A of List-I read with Article 269(3) and Section 3(a) of Central Sales Tax Act, 1956 - Held that - AO directed to pass fresh assessment order and to issue fresh demand notice - Assessment order non-est - The Registrar (Judicial) of this Court shall refund the amount which had been kept in the shape of Fixed Deposit Receipt along with interest, accrued thereon to the petitioner forthwith. Needless to say, as observed earlier, in case any fresh demand is raised, the same shall be dealt with by the State in accordance with law.
Issues:
Challenge to imposition of tax on stock transfers in inter-state trade; Withdrawal of assessment order and demand notice; Refund of deposited amount with interest. Analysis: The petitioner filed a writ petition seeking to quash an order and demand notice issued by the Assistant Excise and Taxation Commissioner, contending that the imposition of tax on stock transfers in inter-state trade was beyond the State Legislature's jurisdiction and violated relevant provisions of the Central Sales Tax Act, 1956. The State counsel, on behalf of the ETO, Moga, agreed to withdraw the assessment order and requested the opportunity to pass a fresh assessment order after providing the petitioner with a hearing. Consequently, the High Court declared the original order and demand notice as non est, allowing the Assessing Officer to issue a fresh assessment order and demand notice in compliance with the law. Following a previous court order, the petitioner had deposited 25% of the demanded amount in a fixed deposit of a nationalized bank. The petitioner's counsel requested the return of this amount along with the accrued interest, a request that was unopposed by the State counsel. The court directed the Registrar (Judicial) to refund the deposited amount with interest to the petitioner promptly. It was emphasized that any future demand raised by the State should be handled in accordance with the law. Subsequently, the petition was disposed of by the High Court.
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