9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (2) TMI 97 - HC - VAT and Sales TaxSeeking declaration of entitlement to the benefit of exemption of sales tax (value added tax) for the balance period of five years from April, 2005 to July, 2008 - G.O.Ms.No.6 - HELD THAT - Having regard to the object and spirit behind issuance of G.O.Ms.No.6 dated 18.12.1998, and the fact that petitioner was provided exemption thereunder for the assessment periods 2003-2004 and 2004-2005, denial of such benefit for the remaining period of five years as contemplated under the aforesaid government order does not appear to be justified. The respondents are directed to treat the petitioner as an eligible unit under G.O.Ms.No.6, dated 18.12.1998, and extend the benefit of sales tax exemption for the period of five years excluding the period for which benefit has already been granted to the petitioner. This shall be carried out within a period of four months from the date of receipt of a copy of this order. Petition allowed.
Issues:
- Interpretation of sales tax exemption under G.O.Ms.No.6, dated 18.12.1998. - Eligibility of the petitioner for sales tax exemption. - Application of tax relief benefits to specific projects. - Compliance with government orders and agreements. Interpretation of Sales Tax Exemption: The petitioner sought a declaration for exemption of sales tax under Article 226 of the Constitution of India for the period from April 2005 to July 2008. The government order G.O.Ms.No.6, dated 18.12.1998, provided incentives including 100% exemption from sales tax for specific projects in tourism areas. The petitioner argued that they were eligible for this exemption based on their public-private partnership project involving an IMAX theatre and entertainment complex. Eligibility for Sales Tax Exemption: The petitioner, a public limited company, entered into an agreement with the State of Andhra Pradesh for the establishment of the IMAX theatre project. The petitioner contended that they were entitled to the sales tax exemption as per the terms of the agreement and the government order. Respondent No.3 raised a demand for sales tax for certain periods, leading to a legal dispute over the eligibility of the petitioner for the exemption. Application of Tax Relief Benefits: The court noted that the purpose of G.O.Ms.No.6 was to attract investment in the tourism sector by providing incentives like sales tax exemption. The respondents argued that the exemption was limited to specific categories of projects such as 3-star hotels, amusement parks, and theme parks. However, the court emphasized the spirit of the government order to encourage entrepreneurship in tourism projects and found the denial of the benefit unjustified for the petitioner. Compliance with Government Orders and Agreements: After considering the submissions and the history of the case spanning over 18 years with multiple adjournments, the court directed the respondents to treat the petitioner as an eligible unit under G.O.Ms.No.6 and extend the sales tax exemption for the remaining five-year period. The court also instructed that any tax paid under protest by the petitioner should be refunded within a specified timeframe, emphasizing compliance with the order. In conclusion, the court allowed the writ petition, granted the sales tax exemption to the petitioner, and ordered necessary actions to be taken by the respondents within a stipulated period, ensuring the implementation of the tax relief benefits as per the government order and the agreement between the parties.
|
