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Showing posts with label sales tax. Show all posts
Showing posts with label sales tax. Show all posts
Tuesday, January 22, 2013

Section 6-C of the Andhra Pradesh General Sales Tax Act, 1957 states as follows: S.6-C Levy of tax on packing material: "Notwithstanding anything contained in Section 5, Section 5F, Section 6 and Section 6A, the rate of tax on packing material sold with the goods shall be the same as that of the goods packed or filled, whether or not there is separate sale or agreement for sale for the packing material and the goods packed or filled."- S.6 of the Andhra Pradesh VAT Act, 2005 states as follows: 6. Tax on packing material:- Where goods sold or purchased are contained in containers or are packed in any packing material liable to tax under the Act, the rate of tax applicable to such containers or packing material shall, whether the price of the containers or packing material is charged for separately or not, be the same as the rate of tax applicable to such goods so contained or packed, and where such goods sold or purchased are exempt from tax under the Act, the containers or packing material shall also be exempted. - in the business of sale of soft drinks, there is a facility and practice of recycling the bottles and crates in which beverages are sold and that the charges for such limited user of bottles and crates is recovered separately. Since the bottles and crates constitute packing material, such turnover is liable to be taxed @ 4 % u/s. 4(8) of the Andhra Pradesh VAT Act, 2005 r/w Item No.90 of Schedule-IV of the said Act. The Revenue therefore is not entitled to treat the entire turnover as taxable @ 12.5 % by placing reliance on S.6 of the Andhra Pradesh VAT Act, 2005 which was not even mentioned by the assessing authority in the show cause notice issued by him to the petitioner. The view taken by the assessing officer that the petitioner cannot split the turnover on the sales of soft drinks and the lease rentals on the bottles and crates and therefore the total consideration including both categories is liable to tax @ 12.5 % is not correct as held by us above. The assessing officer has also not made any enquiries from the wholesalers/ retailers regarding the claim of the petitioner that the bottles and crates were given on lease while the soft drink is subject matter of an outright sale. It is clear that the assessing authority ignored the terms and conditions between the parties and the fact that tax can only be levied on the transaction as it existed between the parties and not on what is presumed by him without any basis. Therefore, the Writ Petitions are allowed and the assessment order dated 15-09-2005 impugned in W.P.No.21115 of 2005, the assessment order dated 08-12- 2005 for September, 2005 impugned in W.P.No.856 of 2006 and the notice dated 27- 11-2007 of the Assistant Commissioner (CT) (LTU), Saroornagar division, Hyderabad u/s. 29 of the Andhra Pradesh VAT Act, 2005 are set aside and the respondent therein is restrained from taking any action pursuant to his notice in form VAT 305-A dated 8-12-2005 for October, 2005 and from issuing any notices for the months of November, 2005 onwards contrary to our decision in these cases. 48. Therefore, the TREVCs and the writ petitions are allowed. No costs.

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THE HON'BLE SRI JUSTICE GODA RAGHURAM AND THE HON'BLE SRI JUSTICE M.S. RAMACHANDRA RAO       TREVC Nos. 43, 44 AND 45 OF 2007,  ...
Monday, February 27, 2012

How far deductions are allowable under rule 9(a) of the Kerala General Sales Tax Rules, 1963 ("the Rules" hereinafter) for trade discounts? -The Assessing Authority shall not reject the appellants' claim for exemption of the amounts of trade discount solely on the ground that the discount amounts were not shown in the sale invoices.

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REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVI...
Wednesday, January 18, 2012

Essar Oil Limited (hereinafter "Essar") was given the benefit of Sales Tax incentive under the Government of Gujarat =a person

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REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION ...