Law: Sales Tax Act, 1990

Section: 3(1A),13,8(1)(a),7

(a) Sales Tax Act (VII of 1990)---Ss. 3(1A) & 13---S.R.O. 207(I)/98, dated 31-3-1998---S.R.O.208(I)/98 dated 31-3-1998---Further tax---Exemption---Sugar Mill---Exemption of sales tax granted to sugar mills was not available in respect of "further tax" as it was a separate and distinct levy---Further tax levied was chargeable on market price of the sugar that was supplied to unregistered person---Sugar Mills were directed to pay the adjudged amounts of liability along with additional tax and penalty. (b) Sales Tax Act (VII of 1990)--- ----Ss. 8(1)(a) & 7---Tax credit not allowed---Adjustment or deduction of input tax of electricity or gas consumed in housing colony---Validity---Provision of Cl. (a) of S.8(1) of the Sales Tax Act, 1990 bars the deduction of input tax on those goods which either did not contribute in the process of production of taxable goods directly or did not become a constituent or integral part of the taxable products---Electricity or gas consumed in housing colony of a Sugar Mill did not contribute to the production process of sugar; it only contributed to the comfort of the residents of colony in which case the adjustment or deduction of input tax was barred under S.8(1)(a) of the Sales Tax Act, 1990. Messrs Pioneer Cement v. The Collector of Sales Tax, GST 2002 CL 106 distinguished. (c) Sales Tax Act (VII of 1990)--- ----S.7(1),'First proviso---Sales Tax General Order No.2 of 2004 dated 27-5-2004---Determination of tax liability---Limitation---Adjustment of input tax in violation of bar of limitation was not permitted---Appellant contended that provision of S.7 of the Sales Tax Act, 1990 was directory in nature, it only embodied a procedural requirement a bona fide lapse in observing the procedure was not liable to punitive action---Validity---Show-cause notice or the did not disclose the detailed working of those amounts which the appellants had adjusted out of the respective tax periods---Consolidated figure of such adjustment had been shown but period wise break up of the figures had not been indicated---Appellants too had not denied such allegation in toto---System or mechanism for seeking waiver of the liability accruing…

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