Law: Sales Tax Act, 1990

Section: 2(46)(e)

SALES TAX ACT, 1990 Section 2(46)(e) The case regarding the value of supply declared by the appellant in respect of different products manufactured by company was not only based on presumptions and suppositions but is also without any support of law, so far as valuation is concerned as no valuation committee was constituted by the Commissioner, the entire valuation exercise carried out by Directorate General of Intelligence & Investigation (Inland Revenue) was therefore, coram, non-judice, illegal and without lawful authority & jurisdiction and cannot be sustained.-Facts of the case, as gathered from the appeal papers and rival arguments, are that information was received that the appellant; a manufacturer, was involved, in tax evasion by way of under declaration of value of supply of its products/goods and parking of additional amount (actual receipt - declared receipt) of consideration received against actual value of supply. On the basis of these charges, the sales prices declared by the appellant were disregarded and case was made out on the basis of price lists allegedly belonging to the appellant company, obtained from some retailers dealing in the appellant's products. The declared value of per unit price of each and every product was compared with the price list for the relevant period and on this basis it was observed that for the under reference period, the actual value of supply came to Rs. 58,398. million vis-a-vis declared value of Rs. 35,715 million. The said value of supply has been worked out on the basis of 'whole sale/sale price' per unit mentioned in price lists allegedly issued by M/s. Orient Group of Companies for the relevant periods. The whole case is therefore regarding the value of supply, declared by the appellant and the value determined by the Department in respect of various products manufactured by the company. No valuation committee was constituted by the Commissioner in the present case. The case is therefore not only based on presumptions and suppositions, but is also without any support of law so far as valuation is concerned. The entire valuation exercise carried out by the Directorate General of Intelligence &…

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