2021 (1) TMI 243 - HC - VAT and Sales Tax

Levy of higher rate of tax - no C Form declarations have been filed by the petitioner - Petitioner had submitted that additional C Forms have been submitted before the Assessing Officer and some have been given credit to - HELD THAT - Without this case being cited as a precedent, the respondent officer was directed to complete the revised demand giving credit to the C Forms where appropriate. After submitting the C-Form, the Assessing officer has prepared Memorandum of Calculation of tax in respect of M/s.Servo Packaging Limited for the year 2013-14 - the impugned order of assessment stands amended in the light of the revised computation dated 05.10.2020. The petitioner will pay the balance demand as raised within a period of four (4) weeks from date of uploading of this order. Petition disposed off.

Summary

Issues:
Challenge to assessment order under PVAT Act and CST Act for the period 2013-14 regarding higher tax rate due to missing 'C' Form declarations.

Analysis:
The petitioner contested an assessment order dated 20.07.2020 under the PVAT Act and CST Act for 2013-14 due to the imposition of a higher tax rate for not filing 'C' Form declarations. During the hearing, the petitioner's counsel mentioned that additional 'C' Forms were submitted to the Assessing Officer, some of which were acknowledged. Consequently, the respondent officer was directed to revise the demand considering the submitted 'C' Forms.

A revised demand calculation dated 05.10.2020 was presented, outlining the tax details for M/s. Servo Packaging Limited for the year 2013-14. The revised demand included various categories such as interstate sales to registered dealers with and without 'C' Forms, sales to unregistered dealers, penultimate sales, stock transfers, high sea sales, sales returns, and discount sales. The total taxable turnover was determined to be Rs. 400,422,534.00, with exempted turnover at Rs. 182,459,500.00, resulting in a total turnover of Rs. 582,882,034.00.

The CST output tax was calculated at Rs. 8,088,067.00, with input tax credit (ITC) from VAT at Rs. 4,500,409.00, CST tax paid at Rs. 3,357,193.00, advance tax paid in 2013-14 at Rs. 200,000.00, leaving a balance of Rs. 30,465.00. Consequently, the impugned assessment order was amended based on the revised computation, and the petitioner was directed to settle the balance demand within four weeks from the order's upload date.

In conclusion, the writ petition was disposed of with the petitioner instructed to pay the outstanding demand within the specified timeframe. The connected miscellaneous petitions were closed without any costs imposed.