Law: Sales Tax Act, 1990

Section: 73,7

(a) Sales Tax Act (VII of 1990)---Ss.73 & 7---Certain transactions not admissible---Input tax---Registered person, a manufacturer cum exporter of confectionary items, was charged with violation of S.73 of the Sales Tax Act, 1990 and demand was raised; and refused the claim of input tax/refund on the ground that suppliers of the registered person were either non-filers or invoice summary was not submitted---Registered person contended that charge of non-submission of invoice summary statement by the supplier unit was illegal and unlawful, since the registered person was not required to submit summary of the purchases and sales of their suppliers; that refund claim was genuine and fully backed by supporting documents; that neither the show cause notice nor the hearing notices were ever received; and that proceedings had been finalized ex parte; and charges levelled were never confronted and he was never afforded an opportunity of being heard---Registered person contended with regard to non-filer suppliers, that monthly sales tax return for the period in question stood duly filed by the supplier; and the same was produced before the appellate forum but it was simply overlooked; that rejection of refund claim on the charge of non filing ever after production of sales tax returns was highly unjustified and illegal; and that objection of "scrutiny for verification of input tax", as generated by STARR was a complaint having no legal backing---Validity---Registered person had been condemned unheard and the arguments presented for the appellant had persuasive value---Orders were vacated along with the orders in original and issue was remanded to the adjudication authorities for de novo proceedings after affording the taxpayer a fair and proper opportunity being heard. (b) Sales Tax Act (VII of 1990)--- ----S.7---Determination of tax liability---Input tax---Rejection of excess input tax claimed on packing material---Appellate Tribunal had already held that agreement between the sales tax department and the Confectioner's Association did not have binding force because it had not been enacted as a piece of legislation and did not have the force of law and directed that…

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