9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (4) TMI 910 - HC - VAT and Sales TaxValidity of assessment orders - Jurisdiction - Constitution of Advance Ruling Authority (comprising three officials not below the rank of Joint Commissioner) - HELD THAT - The Respondents are agreed upon that the decision of the Tribunal in the case of IN RE B.U. BHANDARI PVT. LTD., B.U. BHANDARI AUTOMOTIVE PVT. LTD., B.U. BHANDARI MOTORS PVT. LTD. 2018 (6) TMI 1830 - MAHARASHTRA APPELLATE TRIBUNAL , though it provides relevant legal guidance for the Petitions under consideration, this decision cannot be applied directly to each Petitioner to quash the assessment orders. It is necessary to conduct an enquiry to determine whether the Petitioners can be considered similarly situated persons. The Assessing Officers based their decision on the law the Advance Ruling Authority laid down in the case of M/s. B.U. Bhandari Auto. If this order is reversed, the implication of the order passed by the Tribunal will have to be considered in each case of the Petitioners. Therefore, an enquiry must be conducted to determine whether the facts of each Petitioner case warrant similar treatment. The Writ Petitions are disposed off by quashing and setting aside the impugned assessment orders in each of these Petitions - Commissioner would examine the issue pending before the Commissioner in light of the decision rendered by the Tribunal in the case of M/s. B.U. Bhandari Auto and in the context of the provisions of Section 55 of the Act referred and take the decisions as per law. Petition disposed off.
Issues Involved:
1. Applicability of Value Added Tax (VAT) under the Maharashtra Value Added Tax Act, 2002 (MVAT Act) on various charges levied by motor vehicle dealers. 2. Relevance and applicability of the Advance Ruling Authority's decision in the case of M/s. B. U. Bhandari Auto. 3. Necessity of an enquiry to determine if petitioners are similarly situated to M/s. B. U. Bhandari Auto. 4. Procedure and implications of setting aside the impugned assessment orders. Summary: Issue 1: Applicability of VAT under MVAT Act The Petitioners, motor vehicle dealers, challenged the assessment orders that levied VAT on road tax, insurance premium, octroi duty, and other charges under the MVAT Act, 2002. The assessment orders were based on the premise that these charges are subject to VAT. Issue 2: Relevance of Advance Ruling Authority's Decision The Assessing Officers relied on the Advance Ruling Authority's decision in the case of M/s. B. U. Bhandari Auto, which held that VAT is applicable on these charges. The Maharashtra Sales Tax Tribunal later modified this ruling, stating that such charges cannot fall within the extended meaning of "sale price" under Section 2(25) of the MVAT Act. The Tribunal also held that incentives and discounts from automotive manufacturers do not form part of the "sale price" and do not reduce input tax credit. Issue 3: Necessity of Enquiry for Similar Situations The Court noted that the Tribunal's decision in M/s. B. U. Bhandari Auto provides relevant legal guidance but cannot be directly applied to each Petitioner without an enquiry to determine if they are similarly situated. The Court emphasized the need to examine each Petitioner's case in light of the Tribunal's decision and the provisions of Section 55 of the MVAT Act. Issue 4: Setting Aside Impugned Assessment Orders The Court quashed and set aside the impugned assessment orders and restored the assessment proceedings to the file before the concerned Commissioner of Sales Tax. The Commissioner is directed to re-examine the issues in light of the Tribunal's decision in M/s. B. U. Bhandari Auto and take decisions as per law. The Court clarified that it has not concluded on other aspects that may arise during the assessment proceedings, and the contentions of both Petitioners and the department are kept open. Conclusion The Court disposed of the Writ Petitions by setting aside the impugned assessment orders, restoring the assessment proceedings before the Commissioner of Sales Tax, and directing the Commissioner to re-examine the issues in light of the Tribunal's decision and Section 55 of the MVAT Act. Rule made absolute in the writ petitions with no costs.
|
