Law: Sales Tax Act, 1990

Section: 7(1)

ORDER

It show cause notice dated 18.02.200 issued to the respondent-company on the alleged inadmissible input tax adjustment paid towards electricity and gas bills supplied to the residential colony of the factory within factory premises for the month of January and February, 2000; the adjustment was questioned. The show cause notice was contested. It was originally decided via order-in-original against the respondent. The respondent filed an appeal before the Tribunal, which decided on 08.07.2008 that the adjustment of input tax on electricity and gas consumption supplied by a common commercial meter to factory and labour colony of the factory, by the appellant is justified and within the frame of section 7(1) of the Sales Tax Act, 1990 (‘the Act’). The appeal was allowed and the impugned order-in-original was set aside.

2.    Aggrieved of it, the appellant filed Sales Tax Reference No. 14 of 2008, which met the same fate. This civil appeal is against these concurrent findings of Tribunal and reference jurisdiction of High Court.