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TMI Blog2012 (1) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... cer so that in either case the liability under section 12(1)(a) is net tax liability after providing for rebate on purchase tax. This position is only clarified by the subsequent introduction of rule 38(5) which expressly grants the benefit of rebate on purchase tax payable under section 6(2) to the dealer in the case of assessment made by estimation of turnover. We do not think the Legislature or the Government intended denial of rebate on purchase tax liability under section 6(2) against tax payable by the dealer for any return period. So much so, the contention of counsel for the petitioner that the rule is only clarificatory is tenable. We accordingly allow the revision for the limited purpose of granting rebate of tax determined as pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er claimed rebate of tax on purchase under section 12(1)(a) read with rule 38(5), the assessing officer who made best judgment assessment under section 24 declined it. In the first appeal quantum relief as well as rebate was allowed. However, on second appeal by the State, the Tribunal reversed it restoring the assessment. It is against this order of the Tribunal the petitioner has filed the appeal. Since the controversy is only on the eligibility for rebate of purchase tax assessed on estimated turnover, we have to necessarily refer to the relevant section and the rule which are extracted hereunder: "S. 12(1)(a). Special rebating in certain cases.-(1) In calculating the net tax payable by a dealer for a return period, there shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of both output tax and purchase tax and the procedure provided therein is to pay the net tax after availing of rebate on the purchase tax. The section as such does not specifically cover a situation of best judgment assessment after rejection of the turnover returned by the dealer. However, when the concept of tax liability under the section is only the net tax payable, it goes without saying that in all type of assessments the tax payable is the net tax on sales turnover after granting rebate of the tax payable under section 6(2) on the purchases. Therefore, in our view, the "tax paid" under sub-section (2) of section 6 or section 12(1)(a) will mean tax paid based on return filed or the tax payable based on assessment made by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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