2009 (2) TMI 783

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..... nd body built thereon have separately suffered tax and therefore the assessee is entitled to exemption on the sales turnover of vehicles. However, since no evidence was produced about payment of tax for body built on the chassis, the assessing officer levied tax. The assessment was the subject-matter of the appeal and the Tribunal has remanded the matter vide annexure H order. In the penalty proceedings initiated for evasion of tax, the intelligence officer levied penalty of Rs. 7,57,848. Even though in the first revision the Deputy Commissioner reduced the penalty to Rs. 50,000, the Commissioner of Commercial Taxes in suo motu revision cancelled the first revisional authority's order and restored the penalty against which the assessee .....

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..... hicles and wherever the chassis or the body, as the case may be, has suffered tax under the Act, the assessee engaged in the sale of vehicle will be entitled to rebate on such tax paid. Liability of the assessee to pay tax on sales turnover of motor vehicles at the scheduled rate is absolute and it is for the assessee to prove that the chassis or the body built thereon have suffered tax and on production of proof of the same, the assessing officer is bound to grant rebate on such tax paid. Therefore the assessee engaged in buying chassis and building body thereon cannot claim second sale exemption on vehicle stating that both chassis and body have suffered tax independently on first sales. What the assessee has done in this case is, to clai .....

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..... eel the assessee should be given rebate of tax, no matter such tax may or may not even recovered by the body builder from the assessee. What is required to be proved for rebate is that the tax in fact is paid on chassis or body built thereon and the amount so paid. The payment of tax is obviously by body builder no matter whether it is recovered by the body builder from the assessee or not. However, without proof of payment of tax on the chassis and the body built thereon, the assessee is not entitled to rebate of tax. We clarify this position with direction to the assessing officer to modify the assessment after giving an opportunity to the assessee to produce documents pertaining to payment of tax on the body built on the chassis of each .....

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