2024 (1) TMI 768 - HC - VAT and Sales Tax

Inclusion of coal unloading charges in the value of goods defined u/s 2(h) Entry Tax Act 2007 which are incurred for emptying the railway wagons within the stipulated time after the transportation of goods into the local area - imposition of entry tax on Loco Diesel Charges and Salary of Loco Staff incurred for bring coal from Dadri Plant to Coal Handling Plant after the transportation of goods into the local area - HELD THAT - It is clear that the Tribunal erred in law in not considering the issue as to whether the charges with regard to both the issues were incurred prior to entry of the goods in the local area or were incurred subsequent to entry of goods in local area - questions are answered in favour of the revisionist and against the revenue. The matter is remanded to the Tribunal for consideration afresh. Imposition of entry tax in the hands of the applicant on purchases made by contractors against 20 Form 38 - HELD THAT - There is no infirmity in the order passed by the Tribunal being the last fact finding body. Accordingly, this question is answered against the assessee and in favour of the revenue. The writ petition is disposed of.

Issues Involved:
The judgment addresses the following legal questions:
1. Inclusion of coal unloading charges in the value of goods under the Entry Tax Act 2007.
2. Imposition of entry tax on Loco Diesel Charges and Salary of Loco Staff for transporting coal.
3. Imposition of entry tax on purchases made by contractors against 20 Form 38.

Inclusion of Coal Unloading Charges:
The petitioner argued that the definition of "value of goods" under the Uttar Pradesh Tax on Entry of Goods into Local Areas Act, 2007 was amended retrospectively. The definition includes various charges related to the purchase and transportation of goods into the local area. The petitioner contended that charges incurred after the goods enter the local area should not be added to the value of goods. The court found that the Tribunal erred in not considering whether the charges in question were incurred before or after the goods entered the local area. Consequently, the court ruled in favor of the petitioner on this issue and remanded the matter to the Tribunal for reconsideration.

Imposition of Entry Tax on Loco Diesel Charges and Salary of Loco Staff:
Regarding the imposition of entry tax on Loco Diesel Charges and Salary of Loco Staff for transporting coal, the court noted that the Tribunal failed to determine whether these charges were incurred before or after the goods entered the local area. The court found this to be a legal error and ruled in favor of the petitioner on this issue as well. The matter was remanded to the Tribunal for fresh consideration in light of this finding.

Imposition of Entry Tax on Purchases Made by Contractors:
The court addressed the issue of imposing entry tax on purchases made by contractors against Form 38. Since the Form 38 was not provided by the assessee, the court found no fault in the Tribunal's decision, considering it as the final fact-finding body. Consequently, the court ruled against the assessee on this particular issue and in favor of the revenue.

Conclusion:
In conclusion, the court disposed of the writ petition with the observations mentioned in the judgment, ruling in favor of the petitioner on the issues related to coal unloading charges and Loco Diesel Charges. However, the court ruled against the petitioner on the issue of entry tax on purchases made by contractors due to the absence of Form 38.

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