2016] iNORTHERN TAX REPORTER

Northern Tax Reporter (NTR) is a monthly journal-cum-magazine onmatters relating to Taxation of Goods and Services covering Northern Statesand Supreme Court of India . It is published every month and comes in twovolumes (Jan-Jun and July-Dec) every year.

Material published in the journal is the exclusive copyrighted property ofTaxlaw Publications and can be reproduced or quoted by anyone with properreferencing and citation.

The NTR team welcomes prospective authors/writers to send theircontributions/articles for publishing in this journal for the larger benefit of thefraternity.

NTR is published on every 8th of the month. Non-receipt of any part/issuemust be notified within six weeks of the due date to ntr@taxlawpublications.in.

Views expressed by the Editor in the footnotes and by the Authors in theArticles published in this Journal are exclusively their own.

Vinod VashishtChief Editor98141 03703editor@taxlawpublications.in

VOLUME 3 : Parts 1 to 6July - December, 2016

Mode of Citation: (2016) 3 NTR ___

ii NORTHERN TAX REPORTER [Vol. 3

Disclaimer:

While every effort has been made to ensure that this journal is free from errorsor omissions, the editor, authors, writers, reporters, publisher and printer shallnot be liable in any manner whatsoever for any action taken or omitted to betaken, opinions expressed, advice rendered or accepted based on any materialsor information published in this journal.

Contents: NTR Volume 3

page

GENERAL INDEX ................................................................................. i - xxiv

Cumulative Table of cases reported ................................................... iii - v

Chronological Index to Statutes & Notifications .............................. vi - viii

Index to Circulars, Orders & Clarifications ......................................... ix - x

Index to News & Views ......................................................................... viii

Subject-wise Index of cases reported ........................................... xi - xxiv

JOURNAL SECTION ............................................................................ 1 - 112

REPORT SECTION.............................................................................. 1 - 680

2016] iii

Additional Commissioner of Commercial Taxes, Bangalore Vs, Ayili StoneIndustries Etc. Etc. .................................................. (2016) 3 NTR 371 (SC)

Aditya Birla Retail Ltd Vs, State of Punjab .................. (2016) 3 NTR 221 (PVT)Aggarwal Sweet House Vs, State of Punjab .............. (2016) 3 NTR 349 (PVT)Ahluwalia Contracts India Ltd. Vs, DETC .................... (2016) 3 NTR 1 (HPTT)Ahluwalia Contracts(I) Ltd. Vs, Commissioner of Central Excise .....................

........................................................................... (2016) 3 NTR 142 (P&H)Aircel Ltd. Vs, Commercial Tax Officer ........................... (2016) 3 NTR 28 (SC)Alstrong Enterprises India (P) Ltd. Vs, State of Punjab ....................................

............................................................................ (2016) 3 NTR 315 (PVT)Amar Nath Aggarwal Investments (P) Ltd. Vs, State of Haryana ......................

........................................................................... (2016) 3 NTR 163 (P&H)Amber Enterprises Vs, Additional ETC ................... (2016) 3 NTR 123 (HPTT)Amit Filling Station Vs, State of Haryana ................... (2016) 3 NTR 208 (P&H)Amrit Banaspati Co. Ltd. Vs, State of Punjab ............... (2015) 3 NTR 247 (SC)Avdesh Tracks Private Limited Vs, State of Punjab .........................................

........................................................................... (2016) 3 NTR 108 (P&H)Azad Engineering Works Vs, State of Punjab ............ (2016) 3 NTR 148 (PVT)Batala Co-operative Sugar Mill Ltd. Vs, State of Punjab and Others ................

............................................................................. (2016) 3 NTR 79 (P&H)Beetel Teletech Limited Vs, State of Haryana ........... (2016) 3 NTR 249 (P&H)Bhavika Overseas Vs, State of Punjab and another .. (2016) 3 NTR 396 (P&H)Bhushan Power & Steel Limited Vs, State of Punjab ........................................

........................................................................... (2016) 3 NTR 250 (P&H)Case Cold Forming Limited Vs, Assessing Authority . (2016) 3 NTR 30 (HPTT)Chaudhary Traders Vs, State of Punjab ..................... (2016) 3 NTR 219 (PVT)Dass Rice & Oil Mills Vs, State of Punjab ................. (2016) 3 NTR 257 (P&H)Deputy Commissioner of Commercial Taxes (Vigilance) Vs, Hindustan Lever

Limited ...................................................................... (2016) 3 NTR 3 (SC)Epic Food Products Private Limited Vs, State of Punjab ..................................

........................................................................... (2016) 3 NTR 169 (P&H)Food Corporation of India Vs, State of Punjab .......... (2016) 3 NTR 165 (P&H)Franke Faber India Pvt. Ltd. Vs, Commissioner, Trade & Taxes, Delhi ...........

............................................................................ (2016) 3 NTR 397 (Delhi)

CUMULATIVE TABLE OF CASES REPORTED(NTR Volume 3)

GENERAL INDEX

iv NORTHERN TAX REPORTER [Vol. 3

CUMULATIVE TABLE OF CASES REPORTED(NTR VOLUME 3)

Goodyear India Ltd. Vs, UT, Chandigarh ..................... (2016) 3 NTR 81 (P&H)Goyal Trading Co. Vs, State of Punjab ...................... (2016) 3 NTR 166 (P&H)HCL Infosystems Ltd. Vs, State of Punjab ................ (2016) 3 NTR 128 (P&H)Haryana Pump Manufacturers Association Vs, State of Haryana and another .

............................................................................ (2016) 3 NTR 323 (P&H)Hindustan Construction Co. Ltd. Vs, E&T Commissioner ................................

......................................................................... (2016) 3 NTR 179 (HPTT)Inox Wind Ltd. Vs, Deputy E&T Commissioner ....... (2016) 3 NTR 172 (HPTT)Jagmohan Singh Vs, State of Punjab ........................... (2016) 3 NTR 22 (PVT)Jasch Plastics India Ltd. Vs, State of Haryana .......... (2016) 3 NTR 290 (P&H)Jayam & Co. Vs, Assistant Commissioner. .................. (2016) 3 NTR 223 (SC)Jindal Oil Mills Vs, State of Punjab ............................ (2016) 3 NTR 246 (P&H)Jindal Stainless Ltd. & Anr. Vs, State Of Haryana & Ors. ..................................

............................................................................... (2016) 3 NTR 406 (SC)KRBL Limited Vs, State of Punjab ................................ (2016) 3 NTR 18 (PVT)Khanna Paper Mills Ltd. Vs, State of Punjab ............... (2016) 3 NTR 85 (P&H)Kartar Agro Industries Pvt. Ltd., Bhadson Vs, State of Punjab .........................

............................................................................. (2016) 3 NTR 333 (PVT)Kul Enterprises, Mohali Vs, State of Punjab ............... (2016) 3 NTR 358 (PVT)Luxottica India Eyewear Private Limited Vs, State of Haryana .........................

........................................................................... (2016) 3 NTR 259 (P&H)Mahaluxmi Trader Vs, State of Haryana ................... (2016) 3 NTR 268 (P&H)Mahashiv Promoters Pvt Ltd. Vs, State of Haryana .. (2016) 3 NTR 270 (P&H)Manju Sanitary Wares Vs, State of Punjab ............... (2016) 3 NTR 242 (P&H)Mini Holland Restaurant Vs, State of Punjab ............... (2016) 3 NTR 68 (PVT)Mittal Feed Industries Vs, State of Punjab ................. (2016) 3 NTR 318 (PVT)Modern Dairies Limited Vs, State of Haryana and another ...............................

............................................................................ (2016) 3 NTR 388 (P&H)NSC Projects (P) Ltd. Vs, State of Punjab ................ (2016) 3 NTR 121 (P&H)Nuchem Oils Pvt. Ltd. Vs, State of Haryana .............. (2016) 3 NTR 162 (P&H)Pankaj Goswami & Associates Vs, Sales Tax Tribunal, Haryana .....................

........................................................................... (2016) 3 NTR 178 (P&H)Prime Papers & Packers Vs, Commissioner of VAT . ......................................

........................................................................... (2016) 3 NTR 132 (Delhi)

2016] v

CUMULATIVE TABLE OF CASES REPORTED(NTR Volume 3)

GENERAL INDEX

Punjab Dairy Development Corporation Limited Vs, State of Punjab .......................................................................................... (2016) 3 NTR 145 (P&H)

Purva Alloys & Products Vs, State of Punjab ............. (2016) 3 NTR 288 (P&H)Remax (India) Vs, State of Punjab ............................ (2016) 3 NTR 241 (P&H)SK Steels Corporation Vs, State of Punjab .................. (2016) 3 NTR 75 (PVT)SR Foils and Tissue Limited Vs, State of Haryana and another .......................

............................................................................ (2016) 3 NTR 339 (P&H)Shaila Enterprises Vs, Commissioner of VAT ........... (2016) 3 NTR 211 (Delhi)Shanti Fastners Vs, State of Punjab ......................... (2016) 3 NTR 144 (P&H)Sharma Engineering Works Vs, State of Punjab ......... (2016) 3 NTR 83 (P&H)Shiva Buildtech Pvt. Ltd., Gurgaon Vs, State of Punjab ...................................

............................................................................. (2016) 3 NTR 366 (PVT)Shiv Bhole Trading Company Vs, State of Punjab ..... (2016) 3 NTR 264 (PVT)Shree Balaji Traders Vs, DETC, Palampur ............. (2016) 3 NTR 308 (HPTT)Shreewood Products Pvt. Ltd. Vs, Commissioner of Central Excise ................

............................................................................ (2016) 3 NTR 402 (P&H)Shyam Indus Power Solutions, Mohali Vs, State of Punjab ..............................

............................................................................. (2016) 3 NTR 351 (PVT)Smt. B. Narasamma Vs, Deputy Commissioner Commercial Taxes Karnataka

.............................................................................. (2016) 3 NTR 192 (SC)State of Punjab and another Vs, Indo Arya Central Transport Ltd. ...................

........................................................................... (2016) 3 NTR 185 (P&H)State of Punjab and another Vs, Panchvati Motors Pvt. Ltd., Bathinda ............

............................................................................ (2016) 3 NTR 394 (P&H)State of Punjab Vs, K. Ajesh & Company ..................... (2016) 3 NTR 41 (PVT)Taneja Developers & Infrastructures Ltd. Vs, State of Punjab ..........................

............................................................................ (2016) 3 NTR 158 (PVT)Taxation Bar Association (Regd.) Vs, Chief Secretary .....................................

........................................................................... (2016) 3 NTR 260 (Delhi)Tayal Sons Ltd. Vs, State of Punjab ............................. (2016) 3 NTR 35 (PVT)Vardhman Bartan Store Vs, State of Punjab .............. (2016) 3 NTR 155 (PVT)Verma Roadways Vs, Government of NCT Delhi ....... (2016) 3 NTR 91 (Delhi)Vishu International Vs, State of Punjab and ors. ....... (2016) 3 NTR 161 (P&H)

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vi NORTHERN TAX REPORTER [Vol. 3

CHRONOLOGICAL INDEX TO STATUTES & NOTIFICATIONS(NTR Volume 3 - Journal Section)

Punjab:

Notification dated 29.06.2016 regarding “Apna Tax Scheme” under the PunjabVAT Act ............................................................................................... (JS)3

Notification dated 18.07.2016 regarding amendment relating to jurisdiction ofofficers under the Punjab VAT Act ..................................................... (JS)37

Notification dated 17.08.2016 regarding amendment in section 68 of PunjabVAT Act ............................................................................................. (JS)60

Notification dated 29.08.2016 regarding rates of tax on “Spices” and “e-Bikes”under the Punjab VAT Act ................................................................. (JS)57

Haryana:

Notification dated 14.06.2016 regarding grant of registration under Tax onLuxuries Act under the Haryana Right to Service Act ........................ (JS)21

Notification dated 30.06.2016 regarding grant of registration under EntertainmentDuty Act under the Haryana Right to Service Act ................................ (JS)2

Notification dated 16.08.2016 regarding amendments of Schedules ‘B’ and ‘C’under the Haryana VAT Act ............................................................... (JS)61

Notification dated 12.09.2016 regarding Alternative Tax Compliance Schemefor Contractors under the Haryana VAT Act ...................................... (JS)77

Notification dated 21.09.2016 regarding draft amendments of Schedules ‘B’ and‘C’ under the Haryana VAT Act .......................................................... (JS)75

Notification dated 17.10.2016 regarding amendments of Schedules ‘B’ and ‘C’under the Haryana VAT Act ............................................................. (JS)107

Notification dated 09.11.2016 regarding entry “Rail Coaches, engines, wagons”in Schedule ‘C’ under the Haryana VAT Act .................................... (JS)106

Notification dated 24.11.2016 regarding appointment of Chairman and Membersof the Haryana Tax Tribunal ............................................................ (JS)105

Delhi:

Notification dated 01.07.2016 regarding filing of return using digital signaturesunder the Delhi VAT Act ...................................................................... (JS)1

Notification dated 05.07.2016 regarding Delhi Value Added Tax (Amendment)Act, 2016 .......................................................................................... (JS)37

2016] vii

CHRONOLOGICAL INDEX TO STATUTES & NOTIFICATIONS(NTR Volume 3 - Journal Section)

Notification dated 25.07.2016 regarding effective date of coming into force ofthe Delhi Act No. 3 of 2016 under the Delhi VAT Act ......................... (JS)33

Notification dated 24.08.2016 regarding withdrawal of mandatory requirementof digital signature under the Delhi VAT Act ...................................... (JS)59

Chandigarh:

Notification dated 29.06.2016 regarding amendment of Chd.VAT Act ...... (JS)7

Notification dated 19.07.2016 regarding substitution of Form VAT-15 under theChandigarh VAT Rules...................................................................... (JS)33

HP:

Notification (Draft) dated 10.08.2016 regarding amendment of entry in Schedules‘A’ & ‘B’ under the HP VAT Act ........................................................... (JS)63

Notification dated 11.08.2016 regarding addition of entry “Sim cards” in Schedule‘B’ under the HP VAT Act .................................................................. (JS)62

Notification (Draft) dated 20.08.2016 regarding amendment of entry in Schedule‘A’ under the HP VAT Act ................................................................... (JS)59

Notification dated 20.08.2016 regarding amendment of entry in Schedule ‘A’under the HP VAT Act ....................................................................... (JS)60

Notification (Draft) dated 29.08.2016 regarding amendment of entries in Schedule‘A’ under the HP VAT Act ................................................................... (JS)57

Notification dated 01.10.2016 regarding amendment of entries in Schedule ‘A’under the HP VAT Act ....................................................................... (JS)73

Notification dated 17.11.2016 regarding addition of entry “Anti hail nets” inSchedule ‘A’ under the HP VAT Act ................................................. (JS)106

Notification dated 05.12.2016 regarding exemption to New Cinema Houses underthe HP Entertainment Duty Act ....................................................... (JS)105

J&K:

Notification dated 29.06.2016 regarding addition of entries in Schedule “A” underthe J&K Value Added Tax Act ............................................................ (JS)15

Notification dated 29.06.2016 regarding amendments of entries of Schedule ‘B’under the J&K General Sales Tax Act ............................................... (JS)16

GENERAL INDEX

viii NORTHERN TAX REPORTER [Vol. 3

Notification dated 29.06.2016 regarding amendments in entries of Schedules‘A’, ‘C’ and ‘D-1’ under the J&K Value Added Tax Act ........................ (JS)16

Notification dated 24.08.2016 regarding extension of last date of filing of returnunder the J&K VAT Act ...................................................................... (JS)58

Notification dated 28.09.2016 regarding extension of last date of filing of returnunder the J&K VAT Act ...................................................................... (JS)75

Service Tax

Notification dated 30.09.2016 regarding exemption on Service of transportation,by educational institutions ................................................................. (JS)74

GST

Notification dated 08.09.2016 regarding the Constitution (One Hundred and FirstAmendment) Act, 2016 - relating GST .............................................. (JS)82

Notification dated 10.09.2016 regarding come into force of section 12 of theConstitution (101st Amendment) Act, 2016 - relating GST ................ (JS)82

Notification dated 15.09.2016 regarding constitution of Goods and Services TaxCouncil ............................................................................................. (JS)76

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INDEX TO NEWS & VIEWS(NTR Volume 3 - Journal Section)

______________________________________________________________

Article - Ease of doing of business or disease of doing business ........... (JS)42

Article - An Essay on Advance Ruling under GST Act ............................ (JS)46

Article - Requirement of passing a speaking order ................................ (JS)66

Article - Withering Justice ...................................................................... (JS)72

Article - Proposed Registration Proces - GST ........................................ (JS)93

Article - Goods and Services Tax - Next logical step ............................ (JS)111

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CHRONOLOGICAL INDEX TO STATUTES & NOTIFICATIONS(NTR Volume 3 - Journal Section)

2016] ix

INDEX TO CIRCULARS, ORDERS & CLARIFICATIONS

(NTR Volume 3 - Journal Section)

Circulars and Orders:

Circular dated 09.06.2016 regarding public interface-response time forEntertainment Tax/Duty Act under the HP Public Service Guarantee Act ............................................................................................................. (JS)29

Notice dated 10.06.2016 by ETC regarding e-return filing under the Punjab LuxuryTax and the Punjab Entertainment Tax ............................................. (JS)27

Order dated 10.06.2016 regarding reward/appreciation scheme for dealers underthe Delhi VAT Act .............................................................................. (JS)27

Circular dated 14.06.2016 regarding timeline for grant of RC/permission underthe Haryana Entertainment Duty Act ................................................. (JS)25

Circular dated 14.06.2016 regarding implementation of single ID system underHaryana Acts .................................................................................... (JS)25

Circular dated 14.06.2016 regarding grant of RC within one working day to theindustrial units being set up on self owned premises / land under the HaryanaVAT Act ............................................................................................. (JS)26

Notice dated 17.06.2016 by ETC regarding division of State into administrativewards under the Punjab VAT and CST Acts ...................................... (JS)24

Order dated 23.06.2016 by ETC regarding inspection relating to new registrationunder the Punjab VAT Act ................................................................. (JS)22

Order dated 23.06.2016 by ETC regarding online refund under the Punjab VATAct .................................................................................................... (JS)22

Notice dated 23.06.2016 by ETC regarding single ID for registration for the VAT,CST and Luxury Tax in Punjab ......................................................... (JS)23

Order dated 23.06.2016 by ETC regarding inspection procedure for grant of RCunder the Punjab VAT Act ................................................................. (JS)24

Circular dated 01.07.2016 regarding description of goods not covered by anySchedule under the Delhi VAT Act .................................................... (JS)21

Circular dated 13.07.2016 regarding blocking of uploading of Form VAT-XXVIand XXVI-A under the HP VAT Act .................................................... (JS)41

GENERAL INDEX

x NORTHERN TAX REPORTER [Vol. 3

INDEX TO CIRCULARS, ORDERS & CLARIFICATIONS

(NTR Volume 3 - Journal Section)

Order dated 21.07.2016 regarding issuance of statutory forms in advance underthe Delhi VAT Act .............................................................................. (JS)40

Circular dated 08.08.2016 regarding issuance of statutory forms in advanceunder the Delhi VAT Act .................................................................... (JS)40

Public Notice by ETC dated 11.08.2016 regarding amendment in Form VAT-15under the Chandigarh VAT Act .......................................................... (JS)65

Order of Addl. ETC (Vat) dated 12.08.2016 regarding advance tax exemptionunder the Punjab VAT Act ................................................................. (JS)65

Public Notice by CEO ETTSA regarding generation of e-VAT-12 under the PunjabVAT Act ............................................................................................. (JS)64

Circular dated 31.08.2016 regarding extension of due date for filing of onlinereturn under the Delhi VAT Act .......................................................... (JS)64

Circular dated 09.09.2016 regarding extension of due date for filing of onlinereturn under the Delhi VAT Act .......................................................... (JS)92

Circular dated 30.09.2016 regarding revised guidelines for arrest for failure inservice tax payment .......................................................................... (JS)90

Clarifications:

Clarification regarding rate of tax on "Brushless direct current ceiling fan" underthe Haryana VAT Act, 2003 ............................................................... (JS)30

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2016] xi

SUBJECT-WISE INDEX OF CASES REPORTED

(NTR Volume 3 - Report Section)

Additional Tax / Surcharge - Challenge to the circular dated 14.01.2014 issuedby the Excise and Taxation Commissioner, Haryana, directing for levy ofsurcharge on the amount of lump sum tax payable by the dealers - Held - Forthe detailed reasons recorded in CWP No. 14681 of 2014 of this Court, orderlevying surcharge on the petitioner on the amount of lump sum tax alreadypaid by the petitioner, is set aside - Haryana Value Added Tax Act, 2003,Sections 7A & 9. Mahaluxmi Trader Vs. State of Haryana ...................................................................................................... (2016) 3 NTR 268 (P&H)

Additional Tax/ Surcharge - Lump sum/Composition dealers/contractors -Whether surcharge leviable - Held - In the cases of specified class of lumpsum dealers, taxable turnover is not to be determined except in the cases ofretailers opting for payment of tax on lump sum basis - Section 7A of the VATAct provides for levy and collection of additional tax on taxable turnover, thecases where taxable turnover is not to be determined, the provisions willhave no application - Circular dated 14.01.2014 issued by the Excise andTaxation Commissioner Haryana, regarding levy of surcharge, set aside -Haryana Value Added Tax Act, 2003, Sections 7A & 9. Mahashiv PromotersPvt Ltd. Vs. State of Haryana ............................... (2016) 3 NTR 270 (P&H)

Appeal - Maintainability of writ petition before the high court in case of questionof law involved - HC dismissed the petition for want of alternate appellateremedy - three question of laws involved - Held - In our considered opinionthe questions that have been raised by the appellant being absolutely purequestions of law, the High Court should have decided these matters - TamilNadu Value Added Tax Act, 2006. Aircel Ltd. Vs. Commercial Tax Officer ................................................................................. (2016) 3 NTR 28 (SC)

Appeal - Competence of the High Court for stay - Pendency of appeal againstthe order passed by the Tribunal - Held - Considering the amendment madeby the State in Section 68(7) of the Act, the ground of challenge no moresurvives - Punjab Value Added Tax Act, 2005, Section 68(7). FoodCorporation of India Vs. State of Punjab ............. (2016) 3 NTR 165 (P&H)

Appeal - Writ - Alternate remedy - Question of law - High Court declined toentertain writ - SLP before Supreme Court - Held - Cause of justice wouldbe best sub-served if the judgment rendered by the High Court is set asideand the matter is remitted to the High Court to decide the questions of lawraised by appellant - Appellant to deposit a sum of Rs.15 crores before theHigh Court within six weeks and High Court to decide the matter within sixmonths – Punjab Value Added Tax Act, 2005 - Constitution of India, Article226. Amrit Banaspati Co. Ltd. Vs. State of Punjab ................................................................................................................... (2016) 3 NTR 248 (SC)

GENERAL INDEX

xii NORTHERN TAX REPORTER [Vol. 3

Assessment – Assessment for a part of year framed raising demand – In themeanwhile, final order passed raising no additional demand – Held - As theassessment for the year 2000-2001 was completed, a provisionalassessment for a part of that year could not be enforced as the assessingauthority had taken care of the entire material available with him at the timeof framing of assessment - Punjab General Sales Tax Act, 1948. ... ShantiFastners Vs. State of Punjab ............................... (2016) 3 NTR 144 (P&H)

Assessment – Provisional assessment – Assessment for a part of year framedraising demand – In the meanwhile, final order passed raising no additionaldemand – Held - As the assessment for the year 2000-2001 was completed,a provisional assessment for a part of that year could not be enforced as theassessing authority had taken care of the entire material available with himat the time of framing of assessment - Punjab General Sales Tax Act, 1948.Shanti Fastners Vs. State of Punjab .................... (2016) 3 NTR 144 (P&H)

Assessment - Suppressed turnover - Inspection - Penalty - Assessee maintainedfalse and incorrect accounts with a view to suppress his sales and stock ofgoods - Inspection of premises - Both orders passed by the AETC and passedby the DETC upheld - Himachal Pradesh Value Added Tax Act, 2005, Sections16 & 34. Shree Balaji Traders Vs. DETC .......... (2016) 3 NTR 308 (HPTT)

Check post/ICC - Non furnishing of information electronically - Inter-statetransaction - Works contract - Held - Penalty order upheld, but, local vatimposed set aside - Himachal Pradesh Value Added Tax Act, 2005, Section34(7) - Himachal Pradesh Value Added Tax Rules, 2005, Rule 61A. AhluwaliaContracts India Ltd. Vs. DETC .............................. (2016) 3 NTR 1 (HPTT)

Check post/ICC - Attempt to evade tax – Undervaluation of goods – Non reportingand vehicle intercepted while carrying multiple goods – No bills or GRproduced – Penalty imposed on the basis of valuation by the detainingofficer – Appellant contended high valuation – Evidence produced in theshape of copies of invoices and entry of those goods at ICC – Section 46Anot invoked – Determination of price held to be void ab initio – Matterremanded – Punjab Value Added Tax Act, 2005, Sections 46A, 51. JagmohanSingh Vs. State of Punjab ...................................... (2016) 3 NTR 22 (PVT)

Check post/ICC - Attempt to evade tax – Non reporting of diamond jewellerybrought into Punjab from Mumbai – On demand ‘jangad vouchers’ produced- Penalty imposed concluding transaction not covered by proper or genuinedocuments - Risk of life cannot be considered as an excuse to comply withmandatory provisions of law - Order of first appellate authority contrary tocorrect law and perverse - Order of AETC imposing penalty restored – PunjabGeneral Sales Tax Act, 1948, Section 14-B. State of Punjab Vs. K. Ajesh &Company ............................................................... (2016) 3 NTR 41 (PVT)

2016] xiii

Check post/ ICC – Nature of transaction – Goods in transit declared – Penaltyon the basis of improper documents – Tribunal remitted the matter fordeciding whether the transaction was a sale or stock transfer in addition toother issues – Appeal before High Court contending check post officer notauthorised to go into nature of transaction – Held - The officer at the checkpost can not determine the nature of transaction, that being the job of theregular assessing authority - Punjab Value Added Tax Act, 2005, Section51. HCL Infosystems Ltd. Vs. State of Punjab ..... (2016) 3 NTR 129 (P&H)

Check post/ICC – Jurisdiction of checking officer – Vehicle chased and broughtback from a distance of 3km from ICC – Failure to produce documents –Admission of part of driver regarding its fault – Penalty – Held - Wilfulescape or wrongful act of the driver cannot divest the officer having jurisdictionto take action against the offender – Appeal dismissed - Punjab Value AddedTax Act, 2005, Section 51. Azad Engineering Works Vs. State of Punjab .............................................................................. (2016) 3 NTR 148 (PVT)

Check post/ICC - Excess goods without documents – Penalty imposed on thebasis valuation by the detaining officer on statement of the driver – Held - Aregular procedure has been provided under the Act for determining the priceof the goods which the designated officer has not followed - Order of penaltyquashed – Punjab Value Added Tax Act, 2005, Sections 46A, 51.VardhmanBartan Store Vs. State of Punjab ......................... (2016) 3 NTR 155 (PVT)

Check post/ICC - Penalty – Goods in transit carried through railway – Goodsdetained by mobile wing for improper documents and penalty imposed –Appeal by State contending that Tribunal erred in holding that section 51could not be invoked when goods are carried through train – Held - ‘GoodsVehicle’ as per the definition section clearly indicates that vehicles that runon fixed rails are excluded – Appeal dismissed – Punjab Value Added TaxAct, 2005, Sections 2(l) & 51. State of Punjab and another Vs. Indo AryaCentral Transport Ltd. ......................................... (2016) 3 NTR 186 (P&H)

Check post/ICC - Escape route - Non reporting at ICC - Not furnished informationregarding goods even in the consignor’s State - Attempt to evade tax -Appellant also failed to produce any document to prove that the driver adoptedthe route on account of the bad condition of the road - Appeal dismissed -Punjab Value Added Tax Act, 2005, Section 51.Chaudhary Traders Vs. Stateof Punjab ............................................................. (2016) 3 NTR 219 (PVT)

Check post/ICC - Road-side checking by mobile wing – Undervaluation of goodssuspected – Penalty - Under valuation was assessed on mere assumptionswithout holding an enquiry regarding the actual value of the goods – Matterremanded – Punjab Value Added Tax Act, 2005, Sections 46A, 51. AdityaBirla Retail Ltd Vs. State of Punjab ...................... (2016) 3 NTR 221 (PVT)

GENERAL INDEX

xiv NORTHERN TAX REPORTER [Vol. 3

Check post/ICC - Vehicle reported at ICC carrying two consignments - Only oneconsignment reported and entry tax paid - Goods detained and penaltyimposed - Claim of deposit of tax in bank before detention not plausible -Held - Process of deposit of money started only after goods were detained -No perversity found in the orders passed by the Lower Authorities - Appealdismissed - Punjab Value Added Tax Act, 2005, Section 51. Manju SanitaryWares Vs. State of Punjab ................................... (2016) 3 NTR 242 (P&H)

Check post/ICC - Detention of goods - Department insisting that goods could bereleased only on cash deposit or furnishing of bank guarantee - Petitionerwants to avail remedy of appeal - Held - Directed release of the detainedgoods and vehicle on deposit of 25% of amount of penalty imposed andfurnishing of surety for the balance amount - Punjab Value Added Tax Act,2005, Section 51(7). Jindal Oil Mills Vs. State of Punjab ......................................................................................................... (2016) 3 NTR 246 (P&H)

Check post/ICC - E-trip not generated - Penalty imposed - Contention that rule64-A is directory and not mandatory in nature and cannot attract penalty -Held - When the Act and Rules provide for obligation to be performed in theprescribed manner then it is obligatory to conform to the provisions of law inletter and spirit and violation thereof would be certainly punishable - Intentionto evade the tax is writ large - Penalty upheld - Punjab Value Added Tax Act,2005, Section 51 - Punjab Value Added Tax Rules, 2005, Rule 64-A.ShivBhole Trading Company Vs. State of Punjab ........ (2016) 3 NTR 264 (PVT)

Check post/ICC - Sale returns/ rejects - Goods reported at ICC, mis-match indocuments discovered by mobile wind - Penalty imposed - Not meant fortrade being rejects from customer - Goods were prepared as per specificorder and design of Rail Coach Factory and could not be sold anywhere else- Order of penalty imposed against the appellant quashed - Punjab ValueAdded Tax Act, 2005, Section 51. Alstrong Enterprises India (P) Ltd. Vs.State of Punjab ..................................................... (2016) 3 NTR 315 (PVT)

Check post/ICC - Cattle feed manufacturing - Penalty imposed only for thesuspicion that the appellant has been bringing rice for sale and not for usingthe same in the manufacturing of the Cattle Feed - Held - Definition of thecattle feed indicates that rice is an ingredient of feed and as per certificate ofregistration the appellant could make grains for manufacturing cattle feed -Such suspicion in mind of the Designated Officer appeared to be based onconjectures and surmises - Penalty order set-aside with direction to therespondents to make refund of the penalty if it was got deposited by theappellant - Punjab Value Added Tax Act, 2005, Section 51. Mittal FeedIndustries Vs. State of Punjab ............................... (2016) 3 NTR 318 (PVT)

Check post/ICC - Report for imposition of penalty forwarded to AETC by anofficer other than the concerned detaining officer - Held - Legislature has notauthorized any person except the Detaining Officer to submit a report within

2016] xv

72 hours - Penalty order quashed - Punjab Value Added Tax Act, 2005, Section51.Kartar Agro Industries Vs. State of Punjab ....... (2016) 3 NTR 333 (PVT)

Check post/ICC - Misdescription of goods - Vehicle carrying two types of goods“Murmure” and “khand goli” which are tax free – Department contended goodswere “mirchi namkeen” and imposed penalty on the whole lot – Tribunal heldthat goods “mirchi namkeen” liable to be taxed but “khand goli” tax free - Onsegregating the prices of both items, penalty to be imposed only on “mirchinamkeen” and not on collective price - Punjab Value Added Tax Act, 2005,Section 51.Aggarwal Sweet House Vs. State of Punjab ........................................................................................................... (2016) 3 NTR 349 (PVT)

Entries in schedule - Industrial inputs - Rate of tax if not specifically mentionedin the list of industrial inputs - Goods claimed to be produced as industrialinputs - Whether eligible for concessional rate of tax as per Part-II of Schedule‘A’ - Tribunal remanded the case for passing of a detailed reasoned order,whether parts being used as industrial inputs/ raw material or not and coveredunder Part-II of Schedule 'A', keeping in view the law settled by the SupremeCourt in case of Tata Engineering & Locomotive Company - HimachalPradesh Value Added Tax Act, 2005, Part-II of Schedule 'A'. AmberEnterprises Vs. Additional ETC ......................... (2016) 3 NTR 123 (HPTT)

Entries in schedule – Leather cloth/coated fabric/textile fabric/rexine cloth –Taxability - Clarification from the Financial Commissioner and the Tribunal,put it liable for tax - Held - Even under entry 54, the condition of payment ofadditional excise duty in lieu of sales tax is not applicable on the itemmanufactured by the appellant - Item in question is a textile and coveredunder Entries 51 and 54 and no tax is payable on this item - - Haryana ValueAdded Tax Act, 2003, Schedule-B, Entries 51 & 54. Jasch Plastics India Ltd.Vs. State of Haryana ............................................ (2016) 3 NTR 290 (P&H)

Entries in schedule – Submersible pumps below 5 hp – Confusion arose regardingtaxability because of two competing entries in Schedules ‘B’ and ‘C’ afterseeking clarification from the department – Appeal dismissed by Tribunal –High Court held –The contention raised by state that pumping sets of 5 hpand above are exempted, is misconceived - No tax leviable before June 30,2006 - Haryana Value Added Tax Act, 2003, Schedules-B & C. Haryana PumpManufacturers Association Vs. State of Haryana . (2016) 3 NTR 323 (P&H)

Entries in schedule – Paper napkins – Whether covered under Schedule ‘C’entry ‘paper’ - Departmental clarification held it under residual entry – Held -The word 'paper' used in the entry is in generic form, which will include alltypes of paper, which has its essential characteristics – Residual entry canbe invoked only when with liberal construction to the specific entry, the productcould not be forming part thereof - Paper napkins fall under category of paper-Haryana Value Added Tax Act, 2003, Schedule C. SR Foils and Tissue LimitedVs. State of Haryana and another ........................ (2016) 3 NTR 339 (P&H)

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xvi NORTHERN TAX REPORTER [Vol. 3

Entries in schedule - Sales made to PSEB - Unbundlling of PSEB into twocorporations, PSPCL and PSTCL - New entry to the Schedule after a gap -Status of continuity of taxability after the change over - Held - It was just aprocedural delay on part of the government that the entry No.168 wasintroduced later. The department can’t drive any benefit of this delay bycharging the appellant with higher rate of tax rather this entry would be readin continuation of entry No. 101 - Punjab Value Added Tax Act, 2005, Schedule‘B’. Shyam Indus Power Solutions, Mohali Vs. State of Punjab ................................................................................................ (2016) 3 NTR 351 (PVT)

Entries in schedule – Whether polished and unpolished granite stones areunder separate entries - Exemption allowed by the first appellate authority –Revisional authority reversed the said decision holding that rough graniteand granite tiles are separate and distinct commercial products, granite tilesobtained out of rough granite stones are liable to tax as first dealer – Onappeal, the High Court observed that cutting of granite blocks into smallsizes and polishing does not amount to manufacturing process to attract tax– Appeal before Supreme Court by Revenue - Held - No distinction betweenpolished granite stone or slabs and tiles – If tiles are manufactured or producedafter undertaking some other activities, the position would be different -Different product would emerge – Matter remitted back to the assessingauthority for readjudication - Karnataka Sales Tax Act, 1957, Sections 5 &6B. Additional Commissioner of Commercial Taxes, Bangalore Vs. Ayili StoneIndustries Etc. Etc. .................................................. (2016) 3 NTR 371 (SC)

Entry tax - Constitutional validity - Freedom of inter state trade and commerce- Only discriminatory tax is prohibited under article 304(a) - Non discriminatorytax, no infraction of article 301 - Earlier judgments of this Court in cases ofAtiabari, Automobile Transport and Jindal Stainless based uponCompensatory tax theory rejected - Tax on entry of goods into local area foruse, sale or consumption permissible, even though similar goods not producedwithin the taxing State - Factum as to whether an entry tax is discriminatoryor not has to be examined by the respective benches hearing the same -Constitution of India, Articles 301, 302, 303, 304, 245, 246, 265, Entry 52 listII. Jindal Stainless Ltd. & Anr. Vs. State Of Haryana & Ors. ........................................................................................................ (2016) 3 NTR 406 (SC)

Input tax credit – Denial of input tax credit on the purchase tax - Matter issquarely covered by the order passed by this Court in VATAP No. 6 of 2016- Punjab Value Added Tax Act, 2005. Batala Co-operative Sugar Mill Ltd. Vs.State of Punjab and Others ................................... (2016) 3 NTR 79 (P&H)

Input tax credit - Pet coke used for generation of power for captive consumption- ITC admissibility - Held - Pet coke does not find mention in restrictiveclause of section 13(4) or negative list of section 13(5)(b) - Thereby indicatingpet coke is eligible for full ITC if purchased for captive consumption forgeneration of power - ITC Allowed - Punjab Value Added Tax Act, 2005,

2016] xvii

Section 13 (1), (4) & (5). Khanna Paper Mills Ltd. Vs. State of Punjab .................................................................................... (2016) 3 NTR 85 (P&H)

Input tax credit - Tax Invoice – Technical Defect – Denial of ITC on the groundsthat the original copy of invoice not printed with ‘input tax credit is availableto a person against this copy’ as required under the rules – Held - Tribunalnot justified in rejecting the claim of input tax credit merely on technicalities,when the dealer was able to show that the tax had been paid to the sellingdealer and duly deposited with the State. Provisions of Rule 54 of the Rulesare not mandatory, in case the claimant/dealer is able to prove from otherevidence that the transaction and the claim is genuine - Punjab Value AddedTax Act, 2005, Section 13 - Punjab Value Added Tax Rules, 2005, Rule 54.Avdesh Tracks Private Limited Vs. State of Punjab ................................................................................................................ (2016) 3 NTR 108 (P&H)

Input tax credit - Non production of tax invoices and statutory forms –Consequently assessment framed with denial of ITC - Appeal filed alongwithduplicate documents to support claim – Held - In view of earlier judgmentsand fact duplicate copies are produced, matter remitted for determinationof tax liability afresh and benefit of ITC – Haryana Value Added Tax Act,2003, Section 8(3). Amit Filling Station Vs. State of Haryana ................................................................................................. (2016) 3 NTR 208 (P&H)

Input tax credit – Retrospective amendment – New provision introducedreversing ITC over and above output tax when goods are sold at lower pricethan the purchase price with retrospective effect – Held - New provisionbeing absolutely new in terms of manner of calculation of ITC detrimental todealers - Vested right already accrued to dealer in terms of sales andpurchases made between 2007 and 2010 - Notification struck down to theextent of retrospectivity – Tamil Nadu Value Added Tax Act, 2006, Section19(20). Jayam & Co. Vs. Assistant Commissioner. (2016) 3 NTR 223 (SC)

Input tax credit - Vires - Constitutional validity – New provision introducedreversing ITC over and above output tax when goods are sold at lower pricethan the purchase price with retrospective effect – Held that in such caseswhere goods are sold at lesser prices than purchase price, excess ITClikely to be adjusted against other liabilities of the dealer or claimed in formof refund causing loss to revenue – Preventing State revenue from dwindlingis the cause of inserting such a provision – Constitutional validity upheld –Tamil Nadu Value Added Tax Act, 2006, Section 19(20).Jayam & Co. Vs.Assistant Commissioner. ....................................... (2016) 3 NTR 223 (SC)

Input tax credit – New provision introduced reversing ITC over and above outputtax when goods are sold at lower price than the purchase price – Tribunalrelied on similar judgment of the SC - Held - Right already accrued to dealersin terms of sales and purchases made up to 2010 - Legislature never intended

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xviii NORTHERN TAX REPORTER [Vol. 3

to make this amendment effective from back date - Impugned orders setaside – Punjab Value Added Tax Act, 2005, Rule 21(2-A). Kul Enterprises,Mohali Vs. State of Punjab .................................... (2016) 3 NTR 358 (PVT)

Input tax credit – Machinery items for manufacturing process – Denial of ITCthat said items are infrastructure goods – Held - None of items can be ofcategory, which are used for construction of building, rather these are part ofmachinery – ITC allowed - Haryana Value Added Tax Act, 2003, Section 8 &Schedule ‘E’. Modern Dairies Limited Vs. State of Haryana and another ................................................................................ (2016) 3 NTR 388 (P&H)

Interest - Assessee continued to charge same rate of tax even though ratewas increased - Assessing authority accepted returns - Revisionalproceedings initiated on the basis of audit objection - Resulting into levy ofdifferential amount of tax and interest for the intervening period - Paymentof interest challenged - Held -Interest is payable from the date of demand inRevisional proceedings and not from the date of filing of Return - PunjabGeneral Sales Tax Act, 1948, Section 11-D. Epic Food Products PrivateLimited Vs. State of Punjab ................................. (2016) 3 NTR 169 (P&H)

Interest - Demand on account of non-payment/credit of remaining amount oftax due – Entire amount deposited by petitioner not credited correctly by thebank - Held - Petitioner not liable to pay any interest merely because of anerror by the bank - Punjab Value Added Tax Act, 2005 as extended toChandigarh. Goodyear India Ltd. Vs. UT, Chandigarh and others ........................................................................................... (2016) 3 NTR 81 (P&H)

Interest – Claim of interest on the amount refunded - Held – Petitioner is entitledto interest the amount refunded, for the period after expiry of 60 days fromthe date of filing of application for refund till the amount was refunded - PunjabValue Added Tax Act, 2005, Section 40. Dass Rice & Oil Mills Vs. State ofPunjab ................................................................. (2016) 3 NTR 257 (P&H)

Interest – Refund – Claim of refund made of amount deposited by assessee-appellant - Amount refunded partially in January and partially in April - Intereston delayed payment denied contending the amount stood refunded withinthree months of claim of refund made by the appellant - Held - No formalapplication is required to be made for claim of refund – Entitled to interest @12% for the period after three months of passing of order by Tribunal tillrefund was granted - Central Excise Act, 1944, Section 11 BB.ShreewoodProducts Pvt. Ltd. Vs. Commissioner of Central Excise .......................................................................................................... (2016) 3 NTR 402 (P&H)

Inter-State sale - Goods imported into Punjab shown as E-1 sales from Gujaratafter purchasing from Rajasthan - Appears to be a predetermined salecamouflaged as exempted sales - Impacts sale price of Punjab dealer leadingto evasion of tax - Penalty upheld - Transaction held as an inter-state sale

2016] xix

and not an E-1 sale - Punjab Value Added Tax Act, 2005, Section 51 –Central Sales Tax Act, 1956, Section 6(2). Tayal Sons Ltd. Vs. State of Punjab.............................................................................. (2016) 3 NTR 35 (PVT)

Inter-State sale - Inter-state sale or stock transfer - Goods manufactured withthe marking 'GOB’ dispatched by the petitioner from Punjab to its branch inBihar for further local sale in Bihar - State sales tax in the shape of VAT waspaid on that local sale transaction in the State of Bihar - Claim made by thepetitioner that it was a transaction of branch transfer, was rejected and treatedas inter-state sale and the same was upheld by the Tribunal and the CentralSales Tax Appellate Authority - alternative prayer made by the petitionerregarding refund of tax paid in Bihar or transfer thereof to the State of Punjabwas not dealt with - Held - Matter deserves to be remitted back to the AppellateAuthority for dealing with the alternative prayer made by the petitioner - PunjabValue Added Tax Act, 2005 – Central Sales Tax Act, 1956, Sections 20 & 22.Bhushan Power & Steel Vs. State of Punjab ........ (2016) 3 NTR 250 (P&H)

Limitation – Appeal filed immediately on receipt of demand notice – Dismissalby Tribunal on grounds of delay in filing appeal - Appeal before High Courtcontending that copy of order passed by first appellate authority never served,however, appeal filed immediately on receipt of demand notice – Held -Undisputedly copy of the order passed by the first Appellate Authority wasnot served upon the appellant and the appeal was filed by the appellantbefore the Tribunal within limitation from the date it received demand notice- Punjab General Service Tax Act, 1948 - Punjab Value Added Tax Act,2005. Sharma Engineering Works Vs. State of Punjab ............................................................................................................ (2016) 3 NTR 83 (P&H)

Limitation - Revision – Notice issued after 13 years from date of assessmentorder – Held - if no period of limitation has been prescribed, statutory authoritymust exercise its jurisdiction within a reasonable period - In any event, thesame should not exceed the period of five years – Notice deserves to be setaside - Punjab General Sales Tax Act, 1948, Section 21 (1). Punjab DairyDevelopment Corporation Limited Vs. State of Punjab and others......................................................................................... (2016) 3 NTR 145 (P&H)

Limitation - Provisional assessment - Provisional assessment framed after aperiod of six months from the date, evasion was allegedly detected - Held -Order deserves to be quashed - Punjab Value Added Tax Act, 2005, Section30(2). Goyal Trading Co. Vs. State of Punjab ...... (2016) 3 NTR 166 (P&H)

Limitation - Amendment of limitation period from three to six years - Whethercases where limitation period had already expired are time barred - Matteralready covered by the earlier judgment of this Court - Held - no substantialquestion of law - Appeal dismissed - Punjab Value Added Tax Act, 2005,Section 29. Remax (India) Vs. State of Punjab .... (2016) 3 NTR 241 (P&H)

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xx NORTHERN TAX REPORTER [Vol. 3

Penalty - Delayed payment of tax due to ‘certain technical issues’- Mechanicallyimposition of penalty without recording that the appellant had deliberatelynot deposited the tax and had acted in dishonest or contumacious disregardof the provisions of the law - Respondent also failed to record reasons whypenalty was required to be imposed when the appellant had paid interest forthe delay - No sufficient cause - Case remanded for passing fresh reasonedand speaking order - Central Sales Tax Act, 1956, Section 9(2) - HimachalPradesh Value Added Tax Act, 2005, Section 16(7). Inox Wind Ltd. Vs. DeputyE&T Commissioner ........................................... (2016) 3 NTR 172 (HPTT)

Pre deposit – Tribunal directed pre deposit of Rs. 1.50 crore - Appellant wasunable to link receipts produced showing deposit of the amount with theamount claimed to have been paid - Held - In the totality of facts andcircumstances the order of Tribunal be modified to the extent that appealfiled by assessee be entertained on merits on an additional deposit of Rs.25 lacs. Ahluwalia Contracts(I) Ltd. Vs. Commissioner of Central Excise .............................................................................. (2016) 3 NTR 142 (P&H)

Pre deposit – Dismissal of appeal for non-deposit of 25% of additional demandby Tribunal - Impugned order set aside in view of the decision of this Courtin Punjab State Power Corporation Limited - Matter remanded to firstappellate authority to decide afresh - Punjab Value Added Tax Act, 2005,Section 62(5). Vishu International Vs. State of Punjab and ors. ............................................................................................. (2016) 3 NTR 161 (P&H)

Pre deposit – Dismissal of appeals for non-deposit of 25% of additional demandby the first appellate authority and the tribunal - Dismissal orders set aside inview of the decision of this Court in Punjab State Power Corporation Limiteddated 23.12.2015 - Matter remanded to first appellate authority for freshconsideration - Punjab Value Added Tax Act, 2005, Section 62(5). PurvaAlloys & Products Vs. State of Punjab .................. (2016) 3 NTR 288 (P&H)

Provisional assessment - Provisional assessment framed after a period of sixmonths from the date, evasion was allegedly detected - Held - Order deservesto be quashed - Punjab Value Added Tax Act, 2005, Section 30(2). GoyalTrading Co. Vs. State of Punjab ......................... (2016) 3 NTR 166 (P&H)

Re-assessment, opening of - Whether Tribunal fell into error in upholding there-assessment given the nature of previous order - Held - It is quite evidentthat Tribunal’s earlier observation with regard to classification based on thematerial before it was conclusive, Apparently, the revenue accepted it - Neitherthe order of the AO nor of the STO nor indeed that of the Tribunal throw anylight as to on what material persuaded the STO to revisit the entire issue -Impugned order cannot be sustained and set aside - Delhi Sales Tax Act,1975, Section 49 - Delhi Value Added Tax Act, 2004, Section 24. FrankeFaber India Pvt. Ltd. Vs. Commissioner .............. (2016) 3 NTR 397 (Delhi)

2016] xxi

Recovery - Pendency of appeal before Tribunal - Tribunal not constituted -Held - No steps shall be taken for recovery of the demand impugned beforethe Tribunal, in case the petitioner furnishes surety bonds pertaining to thedisputed demand - Haryana Value Added Tax Act, 2003, Section 33(5).Nuchem Oils Pvt. Ltd. Vs. State of Haryana ....... (2016) 3 NTR 162 (P&H)

Recovery - Stay - Tribunal not constituted - Held - Permit those petitioners whohave not filed the appeals so far, to file their appeals before the Tribunalwithout awaiting for its constitution and as soon as such appeals are filed,the stay against recovery shall become effective - Haryana Value AddedTax Act, 2003. Amar Nath Aggarwal Investments (P) Ltd. Vs. State of Haryana........................................................................... (2016) 3 NTR 163 (P&H)

Recovery - Pendency of appeal before Tribunal - Neither the appeal nor stayapplication filed along with that appeal is being taken up for hearing for thereason that there is no Presiding Officer appointed in the Tribunal - Held -No steps shall be taken for recovery of the demand impugned before theTribunal, in case the petitioner furnishes surety bonds pertaining to thedisputed demand - Haryana Value Added Tax Act, 2003, Section 33(5).Pankaj Goswami & Associates Vs. Sales Tax Tribunal, Haryana .......................................................................................... (2016) 3 NTR 178 (P&H)

Recovery - Pendency of appeals before JETC(Appeals) and Tribunal - Suretyfurnished, still recovery is sought to be enforced - Appeals are not beingheard - Respondent submitted that till such time the appeals are taken up forfinal disposal by the appellate authorities, in case the petitioner has alreadycomplied with the provisions of Section 33(5), no recovery shall be effected- Petitioner to get the bank guarantee renewed - Haryana Value Added TaxAct, 2003, Section 33(5). Beetel Teletech Limited Vs. State of Haryana ................................................................................. (2016) 3 NTR 249 (P&H)

Recovery - Pendency of appeal - Neither the appeal nor stay application filedalong with that appeal is being taken up for hearing for the reason that thereis no Presiding Officer appointed in the Tribunal - Respondent submitted thatin case the petitioner complies with the conditions laid down in Section 33 (5)regarding furnishing of surety bonds pertaining to the disputed demand, nosteps shall be taken for recovery of the demand impugned before the Tribunal- Haryana Value Added Tax Act, 2003, Section 33(5). Luxottica India EyewearPrivate Limited Vs. State of Haryana ................... (2016) 3 NTR 259 (P&H)

Recovery – Assessee company wound up – Assets sold off by department forrecovery – Name of the company struck off from records of the registrar ofcompanies – Held - No recovery can be made even if appeal is decided infavour of the revenue as the assets of the respondent-company have alreadybeen taken over by the department and sold out and the company is no morein existence – Appeals dismissed leaving the question of law open - Punjab

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xxii NORTHERN TAX REPORTER [Vol. 3

Value Added Tax Act, 2005.State of Punjab and another Vs. Panchvati MotorsPvt. Ltd., Bathinda ............................................... (2016) 3 NTR 394 (P&H)

Recovery – Stay - Encashment of bank guarantee furnished at the time of releaseof goods without issuing demand notice - Held - Direction that a demandnotice shall be issued to the petitioner in pursuance to the order levyingpenalty and recovery process would be started only after the period given inthe said notice expires or till the decision in the application for stay filed bythe assessee - Punjab Value Added Tax Act, 2005, Section 51.BhavikaOverseas Vs. State of Punjab and another .......... (2016) 3 NTR 396 (P&H)

Refund – Interest – Amount of refund assessed and partly refunded – Balancedue not paid despite repeated reminders - Held – Interest @ ½% to be paidon the balance amount following expiry of period of sixty days from the dateof refund application till the date of refund - Punjab Value Added Tax Act,2005, Section 40. NSC Projects (P) Ltd. Vs. State of Punjab ................................................................................................. (2016) 3 NTR 121 (P&H)

Refund - Delay in issuance of refund - Grievance of the Petitioner that despitethe lapse of over two months since the filing of the quarterly returns, therefunds were not issued - Held - Department to issue amount of refundclaimed with interest up to the date of payment which shall not be later thantwo weeks from date of this order - Delhi Value Added Tax Act, 2004, Section38. Prime Papers & Packers Vs. Commissioner .(2016) 3 NTR 132 (Delhi)

Refund - Interest - Arising due to careless action of VATO, unmindful of the law,resulting an interest burden of nearly Rs. 56 lakhs on the exchequer - Held- Directed to pay to the Petitioner refund amount along with interest - Also,directed the Commissioner to seek an explanation from the VATO - DelhiValue Added Tax Act, 2004, Sections 34, 38 & 42. Shaila Enterprises Vs.Commissioner of VAT ......................................... (2016) 3 NTR 211 (Delhi)

Refund – Interest – Claim of interest on the amount refunded - Held – Petitioneris entitled to interest the amount refunded, for the period after expiry of 60days from the date of filing of application for refund till the amount wasrefunded - Punjab Value Added Tax Act, 2005, Section 40. Dass Rice & OilMills Vs. State of Punjab ...................................... (2016) 3 NTR 257 (P&H)

Refund - Public Interest Litigation - Seeks to raise the issue relating to allegedfailure on the part of the respondents in releasing the 'refund' to the registereddealers - Earlier in a similar PIL by the Association, this Court had observedthat the 'refund' being an individual claim, it is for the aggrieved person, ifany, to seek redressal of his grievance - Held - Directed Respondent No. 2to consider the issues raised in this writ petition by treating the same as arepresentation - Delhi Value Added Tax Act, 2004, Sections 38, 39 & 42.Taxation Bar Association (Regd.) Vs. Chief Secretary ............................................................................................................ (2016) 3 NTR 260 (Delhi)

2016] xxiiiGENERAL INDEX

Revision - Summary dismissal of objection petition by revisional authoritywithout application of mind - Nothing has been mentioned as to how theorder of assessing authority was bad or illegal - Tribunal remitted the caseback to pass a fresh speaking order based on reasons which impelled theauthority to initiate revisional proceedings – Punjab Value Added Tax Act,2005, Section 65. KRBL Limited Vs. State of Punjab(2016) 3 NTR 18 (PVT)

Revision - Whether Revisional Authority could impose interest and penalty forthe first time in the revisional proceedings particularly when no such penaltyand interest were earlier imposed by the Assessing Authority - Held -Revisional Authority could only go into the legality or propriety of the orderand should leave the issue of penalty and interest to be decided by theassessing authority – Punjab Value Added Tax Act, 2005, Section 65. S.K.Steels Corporation Vs. State of Punjab .................. (2016) 3 NTR 75 (PVT)

Sale price - Multiple units both exempted and non-exempted with uniformmarket price throughout India - Sale of tea packets by the respondent-company from the Dharwad unit which had the benefit of exemption and theunits manufacturing tea outside Dharwad unit which did not have the benefitof exemption were similarly priced - Department concluded that the dealerhad added the tax component to the sale price of Dharwad tea - Held -Uniform pricing cannot be a ground to hold that the respondent was chargingsales tax on a sale price of the goods manufactured in the exempt unit -Karnataka Sales Tax Act, 1957. Deputy Commissioner of Commercial Taxes(Vigilance) Vs. Hindustan Lever Limited .................... (2016) 3 NTR 3 (SC)

Service tax – Pre deposit – Tribunal directed pre deposit of Rs. 1.50 crore -Appellant was unable to link receipts produced showing deposit of the amountwith the amount claimed to have been paid - Held - In the totality of factsand circumstances the order of Tribunal be modified to the extent that appealfiled by assessee be entertained on merits on an additional deposit of Rs.25 lacs. Ahluwalia Contracts(I) Ltd. Vs. Commissioner of Central Excise ............................................................................. (2016) 3 NTR 142 (P&H)

Statutory form ‘C’ - Non/Late-submission of statutory forms -Lapse of six years- Appellant filed untrue, incomplete and incorrect returns deliberately toescape payment of due tax - Upheld interest and penalty imposed - Taxliability of the appellant to be re-determined in view of observations madeby the Tribunal - - Himachal Pradesh Value Added Tax Act, 2005, Sections19(1) & 50(2) - Central Sales Tax Act, 1956, Section 9(2B). Case ColdForming Limited Vs. Assessing Authority ............ (2016) 3 NTR 30 (HPTT)

Survey, search and seizure - Business of transportation of goods of dealers -Survey sealing of premises - It was pointed out that the Petitioner is atransporter and not a dealer - Goods lying at premises are vat paid goodsand traceable to bona fide dealers - Held that - Mere non-production of

xxiv NORTHERN TAX REPORTER [Vol. 3

documents or books of accounts, action under Section 59 for a survey ofthe premises and for seeking information, records etc. could not automaticallypermit the coercive actions, including sealing of the premises - Delhi ValueAdded Tax Act, 2004, Sections 59 & 60. Verma Roadways Vs. Governmentof NCT Delhi ......................................................... (2016) 3 NTR 91 (Delhi)

Taxability of of food or other articles of human consumption - Whethervat on 40% of billed amount, of food or other articles of human consumptionor beverages on which service tax is being charged, is chargeable or not -Punjab VAT Act, 2005, Section 2 & 85 - Constitution of India, Clause (29-A)(f) of article 366. Mini Holland Restaurant Vs. State of Punjab ............................................................................................. (2016) 3 NTR 68 (PVT)

Tax deduction at source - TDS deposited 1% less than the required, inignorance of the amendment in law - Penalty imposed - Held - Tribunaldoes not find any reason to hold that the appellant had intentionally andwillfully not deducted the full tds and deposited the same on time - PunjabValue Added Tax Act, 2005, Section 27(6). Taneja Developers &Infrastructures Ltd. Vs. State of Punjab ............... (2016) 3 NTR 158 (PVT)

Works Contract - Inter-state purchase against ‘C’ forms - Does not confine orlimit to goods specified in the Certificate of Registration only for ‘resale’ -Also incorporates goods for use in the manufacturing or processing of goodsfor sale or in telecommunication, mining or power distribution and generation- Himachal Pradesh General Sales Tax Act, 1968, Sections 12-A, 31, 33(1)- Himachal Pradesh Value Added Tax Act, 2005, Section 17 -Central SalesTax Act, 1956, Sections 2(ja) & (g), 8(1)(3)(4), 13(1) - Central Sales Tax(R&T) Rules, 1957, Rule 13. Hindustan Construction Co. Ltd. Vs. E&TCommissioner .................................................. (2016) 3 NTR 179 (HPTT)

Works contract – Declared goods – Use of iron and steel in reinforced cementconcrete – Goods reamin same at the time of taxability that is point ofaccretion – Cutting into shapes and bending does not alter character ofgoods – Treated as declared goods - But where iron and steel are used formanufacturing of other goods such as doors etc. which are fitted intobuildings, not exempt from tax – Central Sales Tax Act, 1956, Section 14.Smt.B. Narasamma Vs. Deputy Commissioner Commercial Taxes Karnataka ............................................................................... (2016) 3 NTR 192 (SC)

Works contract - Multiple contracts - Determination of taxable turnover – Allowabledeductions towards labour and services - Held - By segregating the nature ofcontracts deductions could be assessed accordingly – Punjab Value AddedTax Act, 2005, Section 27 – Punjab Value Added Tax Rules, 2005, Rule 15.Shiva Buildtech Pvt. Ltd., Gurgaon Vs. State of Punjab ........................................................................................................... (2016) 3 NTR 366 (PVT)

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