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TMI Blog2016 (1) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... hese entries of sale prices including the sale tax element were then posted in the accounts of each customer and, thus, the full amount of goods including the sale tax was collected from the customers. However, sale tax collected from the customers was not deposited by the appellant into Government Treasury in violation of the provisions of Sections 10(4) and 30-A of the PGST Act Appellant was also disbelieved, because of not mentioning of charging of "handling charges" on the sale invoice/bills or in the sale books. Even otherwise the appellant had admitted before the Assessing Authority that the amount received from the customers included sales tax. Thus, it was rightly held by the Assessing Authority that the appellant had violated the provisions of the rules and accordingly, was not entitled to any exemption under Rule 8(2) of the Rules. - appellant has not been able to show any illegality or perversity in the findings recorded by the authorities below warranting interference by this Court - Decided against assessee. - VATAP No. 66 of 2009 - - - Dated:- 24-9-2015 - Ajay Kumar Mittal And Ramendra Jain, JJ. For the Appellant : Mr Aman Bansal, Adv For the Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 411. Thereafter, Punjab Value Added Tax Act, 2005 (for short, 'the VAT Act') came into being with effect from 01.04.2005. The appellant continued to be registered as a taxable person under TIN No. 03651090024 and used to regularly file its quarterly returns under the PGST Act as well as CST Act. In the year 2000, on expansion of production capacity, the appellant applied for the grant of incentive of sales tax exemption, whereupon, General Manager, District Kapurthala issued eligibility certificate No. 537 dated 30.01.2001 (Annexure A-1) authorizing it to take incentive of sales tax exemption for a period of ten years or for the maximum amount of ₹ 45,71,000/- with effect from 30.09.2000 to 29.09.2010. Pursuant thereto, the Assistant Excise and Taxation Commissioner, Kapurthala also issued exemption certificate No. 123/2001- 02 dated 23.01.2002 (Annexure A-2) (on expansion basis) to the appellant as an Export Oriented Unit (EOU). Accordingly, the appellant was exempted from payment of sales tax for the period 30.09.2000 to 29.09.2010 subject to the maximum limit of ₹ 45,71,000/-. On the inspection of the business premises by the Taxing Authorities, certain books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) by way of filing its appeals, but remained unsuccessful. Hence the instant appeals by the appellant-assessee. 4. We have heard learned counsel for the parties. 5. Learned counsel for the appellant submitted that the authorities below misconstrued the definition of 'Export Oriented Unit' given under Rule 2 clause (xi-a) of the Rules, which nowhere provides that the appellant was legally bound to export 25% of its production to claim exemption under Rule 8(1)(vi) of the Rules. Hence, non-achieving the status of 'Export Oriented Unit' as defined in Rule 2(xi-a) of the Rules did not lead to violation of any of the provision of the Act or the Rules made thereunder so as to clothe the respondents with jurisdiction to cancel/sustain the cancellation of the exemption certificate. It was further submitted that the authorities below had erred in holding that the appellant under the garb of handling charges was un-authorizedly charging sales tax from its customers against C Form and STXXII Form on the sale invoices in violation of PGST Act/Rules. Even otherwise, the Department of Industries, Punjab had never recommended the cancellation of exemption certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts of each customer and, thus, the full amount of goods including the sale tax was collected from the customers. However, sale tax collected from the customers was not deposited by the appellant into Government Treasury in violation of the provisions of Sections 10(4) and 30-A of the PGST Act. To clarify the above fact, the Assessing Authority even mentioned the details of 14 sale vouchers in his order. The abovesaid sale vouchers were never disputed by the appellant. The stand of the appellant that it had only charged handling charges from its customers was disbelieved by the Assessing Authority after confronting the appellant with its own ledger page No. 39 of M/s. Kapurthala Hi-Tech Transbelt Private Limited (appellant in VATAP No. 67 of 2009) sister concern of M/s. Kapurthala Beltings (appellant in VATAP No. 66 of 2009) wherein the entries of CST of ₹ 4,03,657.49 Paise (Form J-236 Page) and PST ₹ 36,800.92 Paise and PDT ₹ 56.38 Paise were transferred to Trading Account totalling ₹ 4,40,514.79 Paise as on 31.03.2001. The stand of the appellant that the said entries were wrongly made was not found to be genuine as it could not give any satis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pendent column. The entries of sale prices including the sale tax element are then posted in the account of each customer and thus the full amount of sale price of goods including sale tax is collected from the customers. The amount of sales tax charged and collected ₹ 12,504/- and ₹ 4,29,155/- under the Act and the Central Act respectively during the year 2001-02 from the customers which has not been paid by the dealer into the Govt. treasury was confronted to the dealer. xx xx xx xx xx xx xx x xx After going through the record carefully i.e. sale vouchers, account books and other relevant record, I find that the dealer has charged tax and pocketed it but he was not authorized to do so. Moreover the requirements mentioned for availing exemption being an EOU have not been fulfilled by him as such he has contravened the provisions of the Punjab Deferment and Exemption Rules 1991. In view of the above mentioned facts, the exemption certificate granted under the Punjab Exemption and Deferment Rules, 1991 is hereby cancelled. The Deputy Excise and Taxation Commissioner (Appeals) upheld the findings recorded by the Assessing Officer. On further appeal by the a ..... 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