Law: Sales Tax Act, 1990

Section: 23

(a) Sales Tax Act (VII of 1990---Ss. 36, 2(37), 4, 7, 8(1)(a), 10 & 23---Recovery of tax not levied or short-levied or erroneously refunded---Refund against fake/flying invoices---Recovery of---Input tax adjustment was not admissible against invoices without physical supply of the goods; without use of the same in taxable supplies and further input tax must have been -paid against such goods---Invoices issued by the fake unit did not admit any possibility of adjustment being hollow from within---Such was nothing but a tax fraud as defined under S.2(37) of the Sales Tax Act, 1990---Under the Self-Assessment Scheme, it was the exclusive responsibility of the registered person to substantiate that he claimed and availed input tax adjustment against valid sales tax invoices---Input adjustment against fake/dying invoices being illegal, contention of the appellant was rejected by the Appellate Tribunal. (b) Sales Tax Act (VII of 1990)--- ----S.36---Recovery of tax not levied or short-levied or erroneously refunded---Limitation---Section 36(1) of the Sales Tax Act, 1990 provides that where by any reason of some collusion or a deliberate act airy tax or charge had been erroneously refunded, the person liable to pay the amount of refund erroneously made shall be served with a notice within five years of the relevant date requiring him to show cause for the payment of the amount specified. (c) Sales Tax Act (VII of 1990)--- ----S.36---Recovery of tax not levied or short-levied or erroneously refunded---Object, form and substance of a notice---Effect---Object of every notice, including the notice contemplated by S.36 of the Sales Tax Act, 1990 was to afford the opportunity of hearing and defence---Form of notice had not been prescribed either in he statute or in the rules---Even otherwise the substance was more important than form---Non-mention or wrong mention of section did not affect the nature of a document which was determined on the basis of its contents. (d) Sales Tax Act (VII of 1990)--- ----Ss. 3(3), 7(1), 8(1)(a) & 36---Scope of tax---Liability to pay tax---Fake invoices---Provisions of S.3(3) of the Sales Tax Act, 1990 were misconceived by contending…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492