The Tax Publishers 2020 TaxPub(VAT) 0102 (Mad-HC)

CONSTITUTION OF INDIA, 1950

Article 226

Where benefit of Notification Number in G.O.M.S. No. 79/CT & R/B2 at Serial No. 1, dated 23-3-2007 and Notification Number in G.O.M.S. No. 78/CT & R/B2 at Serial No. 2, dated 11-7-2011, operate and apply to different kinds of dealers and therefore they are not to be taxed and as far as the issue relating to rate of tax is concerned, the same was remanded back to Revenue to pass fresh order in the light of the clarification issued by Authority for Clarification and Advance Ruling vide its Order, dated 25-10-2016. The operative portion of order on the issue relating rate of Tax might be treated as a show cause notice and if necessary, authority might issue appropriate corrigendum to assessee within a period of one month from date of receipt of copy of this order.

Writ petition - Levy of tax at reduced rate - Value addition in respect of the sales of used cars by assessee -

Assessee had challenged the orders passed by authority for the assessment years 2009-10 to 2014-15, denying the benefit of Notification Number in G.O.M.S. No. 79/CT & R/B2 at Serial No. 1, dated 23-3-2007, as per the said notification, a dealer engaged in sale of Used cars/Motor vehicle on value addition without input tax credit was liable to pay tax at the rate of 4% which was subsequently increased to 5% vide Notification Number in G.O.Ms. No. 78, CT & R (B2), dated 11-7-2011-No. II(1) CT R/12(R-20)/2011.Held: It was already held that benefit of Notification Number in G.O.M.S. No. 79/CT & R/B2 at Serial No. 1, dated 23-3-2007 and Notification Number in G.O.M.S. No. 78/CT & R/B2 at Serial No. 2, dated 11-7-2011, operate and apply to different kinds of dealers and therefore they are not to be taxed. The issue relating valuation was answered in favour of assessee. Thus, the demand of tax on Trade Discount in the impugned orders are quashed to that extent. As far as the issue relating to rate of tax is concerned, the same was remanded back to Revenue to pass fresh order in the light of the clarification issued by Authority for Clarification and Advance Ruling vide its Order, dated 25-10-2016. The operative portion of order on the issue relating rate of Tax might be treated as a show cause notice and if necessary, authority might issue appropriate corrigendum to assessee within a period of one month from date of receipt of copy of this order.

REFERRED :

FAVOUR : Directions issued.

A.Y. :



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