Remanded

The Royal Residency a Unit Inpac Travels India Pvt. Ltd. v. Commissiner U.P. Trade Tax Lucknow

Allahabad HC23 Apr 2019STRE/321/2008

Case brief

AI extract

What is this about?

The Revisionist challenged penalty imposed under Section 10-A of the Central Sales Tax Act for purchases including items not in the registration certificate. The High Court remanded the matter directing penalty calculation only on items specifically listed in the certificate.

What did the court decide?

Matter remanded to assess authority to fix penalty only on luggage trolleys, crockery and noodles amounting to Rs. 2,62,490/- within three months.

The Royal Residency a Unit Inpac Travels India Pvt. Ltd. Vs Commissiner U.P. Trade Tax Lucknow — Allahabad HC (2019) — LawSathi Research

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Court No. - 5

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Case :- SALES/TRADE TAX REVISION No. - 321 of 2008 Applicant :- The Royal Residency A Unit Inpac Travels India Pvt. Ltd. Opposite Party :- Commissioner U.P. Trade Tax Lucknow Counsel for Applicant :- Rishi Raj Kapoor Counsel for Opposite Party :- C.S.C.

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Hon'ble Ashok Kumar,J.

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Heard Sri Kushagra Srivastava, learned counsel for the revisionist and Sri B.K. Pandey, learned Standing Counsel for the respondent.

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Brief facts of the case are that the revisionist was granted registration under the U.P. Trade Tax Act as well as Central Sales Tax Act. The registration under U.P. Trade Tax Act was granted vide the certificate issued on 10.05.2000 and the registration under the Central Sales Tax was granted, under Section 7(2) of the Central Sales Tax Act, vide the order dated 19th July, 2000. While issuing the certificate of registration, the assessing authority has mentioned in the said certificate that the revisionist is entitled to import goods which are mentioned in the certificate for the purpose of construction of house and construction of hotel.

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The claim of the revisionist is that the revisionist had affected the purchase of the items so mentioned in the certificate issued by the assessing authority which was utilised for the purpose of construction of house as well as construction of hotel and items used during running of the hotel after construction.

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The proceeding under Section 10-A of the Central Sales Tax Act, 1956 (hereinafter referred to as 'the Act') was initiated and the assessing authority has arbitrarily imposed the penalty under Section 10-A of the Act to the tune of Rs.3,21,861/- vide the order dated 13.07.2004.

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The order passed under Section 10-A of the Central Sales Tax Act was challenged by the revisionist under Section 9 before the Joint Commissioner (Appeals), Gorakhpur Region Gorakhpur. The appeal of the assessee-revisionist was allowed and the matter was remanded vide the order dated 29.09.2006.

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In pursuance of the remand order, the assessing authority has re-examined the facts and the claim of the revisionist and has passed the order dated 28th February, 2006 by which he has imposed penalty of Rs.9,97,777/-.

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Aggrieved by the order dated 28th February, 2006, the appeal was filed before the Joint Commissioner (Appeals) which was rejected vide order dated 29th September, 2006.

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Against the order dated 29th September, 2006, second appeal was filed before the Tribunal. The Tribunal has allowed the appeal in part, however, has recorded incorrect finding which is quoted hereinbelow;

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" आगगतथययककववशलगषणकरनगपरपशनगतवकदममयहससदहहजकतकहहवककरदकतकनग वदनकनक 09.11.2000 सगउतपकदनऔरवबककककककयरपकरमभहहनकसवयनसववककरकर सलयकहहइसकगआधकरपरयहपकयकजकतकहहवककरदकतकनगवदनकनक 01.05.2000 सग 08.11.2000 तकहवकगनदवयवकदममपनजवयनकगआधकरपरआयकवततवसततओनकगसलए फकमर - सवककउपयहगकरनगकगसलएअसधककतहह।इसकगपशचकतवदनकनक 09.11.2000 सग 31.03.2001 कगमधयममहहटलकगवनमकरणकगसलएपकनतबकहरसगकगनदवयपनजवयन पमकणपतकग आधकरपरअसधककतहहनकनहहपकयकजकतकहहकययवकवदनकनक 09.11.2000 सगकरदकतकनगउतपकदनववबककककककयरपकरमभकरवदयकहह। "

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The Tribunal however has fixed the penalty on purchase of Air Conditioner, electrical goods, window, doors and kitchenware etc.

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Apart from the aforesaid items, the Tribunal has also imposed penalty on the purchase made by the revisionist against Form-C of luggage trolley, crockery and noodles.

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Learned Standing Counsel has pointed out that though the items namely Air conditioner, electric goods, window and doors are mentioned in the registration certificate for which the revisionist was allowed to import the same against Form-C, however, there is no mention of luggage trolley, crockery and noodles in the certificate issued under Section 7(2) of the Act.

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Having heard the learned counsel for the parties, the revision is disposed of by directing the assessing authority to fix the penalty only on the purchase of luggage trolley, crockery and noodles which are mentioned by the Tribunal as Rs.69,500/-, Rs.1,76,048/and Rs.16,942/- respectively (total sum of Rs.2,62,490/-).

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The matter is remanded to the assessing authority to recalculate and fix the penalty under Section 10-A of the Act on the amount as mentioned hereinabove and pass an appropriate order within three months from the date of production of the certified copy of this order.

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The revision is disposed of.

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Order Date :- 23.4.2019/A.Kr.*

The Royal Residency a Unit Inpac Travels India Pvt. Ltd. v. Commissiner U.P. Trade Tax Lucknow

Case brief

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The Royal Residency a Unit Inpac Travels India Pvt. Ltd. v. Commissiner U.P. Trade Tax Lucknow

Case brief

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What did the court decide?

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