2024 (1) TMI 512 - HC - VAT and Sales Tax

Whether the Tribunal being the last fact finding authority ought to have returned a clear finding with respect to charges incurred by the importer till the stage of bringing the goods in the local area and charges incurred inside the local area after its entry; before including such charges in the value of goods defined u/s 2(h) Entry Tax Act, 2007? - HELD THAT - With regard to the issue of demurrage, and the bank charges, the Tribunal in subsequent years has accepted the contention of the revisionists and held in their favour. In light of the same, the benefit is required to be given for the assessment year in question. With regard to the unloading cost and other charges, the Tribunal has not come to any finding whether the same included unloading prior to entry of the goods into the local area or subsequent to entry into the local area. Accordingly, these issues are required to be remitted to the Tribunal for a fresh decision. The question of law is, accordingly, answered in the affirmative in favour of the assessee and against the revenue.

Summary

Issues involved:
The judgment deals with the interpretation of the definition of "value of goods" under the Uttar Pradesh Tax on Entry of Goods into Local Areas Act, 2007. The specific question of law raised is whether the Tribunal should have clearly determined charges incurred by the importer till the goods enter the local area and charges incurred inside the local area before including them in the value of goods defined under the Act.

Interpretation of "value of goods":
The counsel for the revisionists argued that the definition of "value of goods" under Section 2(h) of the Act includes various charges related to the purchase and transportation of goods into the local area. It was highlighted that the value of goods should be determined only until the goods enter the local area, and any subsequent charges should not be added to the value.

Treatment of demurrage and bank charges:
The Tribunal in previous years had accepted the revisionists' argument regarding demurrage and bank charges, ruling in their favor. Therefore, the benefit of this ruling was deemed necessary for the assessment year in question.

Remittance of unloading cost and other charges for fresh decision:
However, the Tribunal had not provided a clear finding on whether the unloading cost and other charges included expenses incurred before or after the goods entered the local area. Consequently, these specific issues were directed to be remitted to the Tribunal for a fresh decision.

Conclusion and Disposition:
The question of law was answered in favor of the assessee and against the revenue. The revision petitions were disposed of with directions to provide the benefit of the Tribunal's previous ruling on demurrage and bank charges, and to remit the issues related to unloading cost and other charges for further consideration.