2024 (2) TMI 1299 - SCH - VAT and Sales Tax

Sales tax demand for use of invalid ST-1 Forms, by the selling dealer - it was held by High Court that The rejection of the Forms in the present case and claiming deduction on the basis thereof for the sale of PVC resins at ₹ 9,25,52,964/- was contrary to law. The findings of the Sales Tax Tribunal and the Authorities below are accordingly reversed - HELD THAT - Leave granted. Hearing be expedited.

Summary

Issues involved:
The issues involved in the judgment are delay condonation, sales tax demand related to the use of invalid ST-1 Forms, and the High Court's decision to quash the sales tax demand.

Delay Condonation:
The Supreme Court condoned the delay in the case.

Sales Tax Demand for Invalid ST-1 Forms:
The matter revolved around sales tax demand concerning the use of invalid ST-1 Forms by the selling dealer. The Revenue contended that the forms were invalid, while the assessee's counsel argued that the forms were provided by the purchasing dealers and merely presented by the selling dealers to the taxing authorities. The High Court favored the assessees, noting that the transaction was not in doubt, and consequently quashed the sales tax demand.

High Court's Decision:
The High Court leaned in favor of the assessees and against the Revenue by quashing the sales tax demand. The Supreme Court granted leave for further hearing and expedited the process.