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Showing posts with label CST. Show all posts
Showing posts with label CST. Show all posts
ONE TIME SETTLEMENT SCHEME UNDER PUNJAB VAT ACT AND CST ACT3 comments Monday, January 25, 2021With the advent of GST and dawn of
old indirect tax regime in the form of
VAT, service tax and central excise etc, the State and Central
Governments are looking forward to bring an end to the litigation in the older
regime and in consequence thereof we are witnessing lot of dispute resolution
schemes introduced by Central and State Governments. The Punjab Government, Department of
Excise and Taxation has also introduced a one time settlement scheme for
outstanding dues under Punjab VAT Act , 2005 and CST Act, 1956(hereinafter
called as relevant Acts) on 18.01.2021 and implemented wef 15.01.2021. The
scheme aims at giving relief to the small taxpayers in the form of waiver from
interest penalties and partial waiver from tax already due in the assessments.
The various features of the scheme are as under: 1. Applicability: The scheme is applicable for all
the outstanding dues created in assessments completed till 31st
December 2020 under the Punjab VAT Act, 2005 and CST Act, 1956. One has to
apply under the scheme by 30th April 2021.
2. Who
can apply: Any
persons whose assessment has been made under the relevant Act till 31st
December 2020 is eligible to apply under the scheme. Scheme is not applicable
for those persons on whom penalty or other demand has been imposed/raised
without assessment, for example scheme is not applicable for road side penalty
u/s 51 of the Punjab VAT Act, 2005.
3.
Procedure: (a) A person seeking to apply under
the scheme has to file an application in form OTS-1.
(b) Additional statutory forms for example C, F, H , I etc if any, which could not be produced at the
time of assessment can also be submitted
along with application for further reduction in additional demand.
(c)Along with the application proof
of payment of tax determined under the scheme after waiver has also to be
submitted.
(d) Once application is submitted an
acknowledgement in form OTS-2 shall be issued.
(e) If all the tax determined and
deposited is found to be correct along with other particulars required to be
mentioned in the application, an order of settlement in form OTS-4 shall be
passed or
(f) If there is any deficiency the a
notice in OTS-3 will be issued to complete the same within 7 days.
4. Appeal
cases: The scheme
is also applicable for appeal cases i.e cases where appeal is pending before
any of the appellate authorities i.e the Deputy Excise and taxation
commissioner (Appeals) or Tribunal or High Court or Supreme court. However in
appeal cases a declaration shall be submitted that once the dues are settled
under the scheme , the applicant shall withdraw such appeal within a period of
seven days from the date of communication of order of settlement and the proof
thereof shall be submitted to the concerned officer.
5. Extent
of waiver: The
scheme provides for waiver of 100% of interest and penalty upto an additional
demand of Rs. 500000/- and additional 90% waiver from tax in case where
additional demand is upto Rs. 100000/-. There is no relief to taxpayers whose
additional demand is more than Rs. 5 lakh. It is pertinent to mention here that
additional demand is ussualy the sum total of tax interest and penalty imposed
in the assessment order.
The slab of additional demand has to
be calculated (so far CST Act is concerned ) after reduction on account of
additional statutory declaration forms.
It can be explained with the help of
an example as follows:
Now in above example although
additional demand as per assessment order is 150000/- but after submission of
additional statutory forms if the reduction in tax and interest comes to Rs.
50000/- then the slab for giving waiver under the scheme would be Rs. 100000/-
and thus there will be waiver from tax element
left after reduction @ 90% apart
from 100% waiver from interest and penalty.
In case of appeal where 25% of
additional demand is already deposited which was a pre-requisite for
entertaining an appeal on merits u/s 62(5) of Punjab VAT Act, 2005, the waiver
will be such 25% of additional demand or the amount of waiver as per scheme as
discussed above whichever is higher.
Certain
terms and conditions:
(a)Application in form OTS-1 has to
be filed saperately for every assessment year and accordingly order of
settlement shall be issued under the relevant Act.
(b) No refund shall be given in
respect of 25% deposited of additional demand in appeal cases.
(c) In appeal casee appeal has to be
withdrawn within 7 days from the communication of order of settlement otherwise
the order stands cancelled.
(d) An order of settlement shall not
be reopened in any proceedings by way of review or revision or any other
proceedings under the relevant Act.
(e) Any determined amount paid
undrer the scheme shall not be refundable.
(f) No appeals against the
settlement order shall lie before any of the appellate authorities
(g) Any tax shown as paid in the assessment
order if is later found to be actually unpaid, then the same shall be
recoverable along with applicable interest and penalty, if any, under the
relevant provisions of the Act, notwithstanding with the scheme.
Table
of waiver
The
Notification of scheme can be downloaded herebelow: Cross adjustment between CST and State tax allowable, no interest leviable for short payment0 comments Tuesday, February 3, 2015
Many a times dealers face a situation where due to technical error or clerical mistake while making payment of sales tax, tax is wrongly paid in wrong account i.e. instead of paying under the head of Central sales tax, it is paid under the head State VAT/sales tax. In such case whether adjustment between both heads can be done or not is a question which arises. F form under CST Act can cover transactions of a period more than one month0 comments Saturday, September 21, 2013
Calcutta High Court in Cipla Limited vs Deputy Commissioner, Commercial Tax reported as VSTI 2013 Vol. 17 B-509 has held that There is nothing in Rule 12(5) of CST (R&T) Rules which could be construed to vitiate a declaration form i.e "F" form on a ground that such declaration form covered transactions for a period of more than a month. Issuing C form is statutory obligation of buyer, can be enforced by a writ petition in the High Court0 comments Monday, July 8, 2013
Many a times I receive queries on a common problem faced by many dealers all over India that what to do when the interstate purchaser of goods refuses or doesnot issue the requisite C forms after purchasing the goods at concessional rate of CST @ 2%. The only solution many people feel is the filing of Civil suit for the recovery of such C forms or the balance tax along with the interest from the refusing buyer. Authority for advance ruling under State VAT Act cannot give clarifications under CST Act0 comments Tuesday, July 2, 2013
Andhra Pradesh High court in Prathista Industries Limited vs Commercial tax Officer [2013] 61 VST 58 (AP) has held that Authority for advance ruling under State VAT Act cannot act as Authority for Advance Ruling under Central sales Tax Act, 1956. The High Court held that provisions relating to the "Advance ruling" in State Act are not applicable to proceedings for assessment, reassessment, collection and enforcement of payment under CST Act, therefore authority for advance ruling constituted under State VAT Act cannot give clarifications as such authority under Central Saless Tax Act, 1956. Trade mark is "Goods", royalty for its use is liable to VAT0 comments Thursday, November 29, 2012
Kerala High Court in Malabar Gold Private Limited vs. CTO has held that Trader Mark falls within the definition of goods and royalty received for use of Trade Mark is a deemed sale as transfer of right to use goods and liable to VAT/sales tax. Crucial date of sale for issuing C forms0 comments Sunday, November 25, 2012
Many a times I have received a query from different parts of the country that what is the crucial date of sale to be taken while issuing of C forms under CST Act, 1956 i.e whether date of invoice or the date on which goods are received by the purchasing dealer? C form is a form for the concessional rate of CST on the inter-state sale of goods and is issued by purchasing dealer in one State to the selling dealer in another State for the inter-state sales transactions done during the period of three months i.e a quartar. C forms can be issued for purchase of goods used in telecommunication even if such goods not resold0 comments Sunday, September 23, 2012Andhra Pardesh High Court in a very important judgement namely Indus Towers Limited vs Commercial Tax officer has held that C forms can be issued for the purchase of goods used in the telecommunication network even if such goods are not resold. The Hon'ble High Court held as under: CST (Punjab) Rules amended-Statutory forms under CST to be online0 comments Saturday, September 22, 2012
Rule 7 of Central Sales Tax (Punjab) Rules has been amended to provide for the issuance of online statutory forms i.e C, F, H, E-I, E-II and I forms under Central Sales Tax Act, 1956. The rules provide for compulsory filing of returns in the Form-1 and VAT-18 and VAT-19 by every dealer registered under CST Act.
Whether F form is required if goods are sent inter-state for job work or repairs?1 comments Sunday, June 17, 2012
Section 6A of CST Act, 1956 provides that if a dealer claims
that he is not liable to pay CST on an
interstate movement of goods due to the reason that it is not sale and the
goods have been transferred inter-state to any other place of his business or to
his agent or principal, then he will have to produce a prescribed form i.e Form
F to his assessing authority duly signed by the principal officer of his other
place of business or his agent or principal as the case may be.
Transfer of Right to use goods-deemed sale or a service8 comments Sunday, April 15, 2012Transfer of Right to use goods for cash, deferred payment or valuable consideration is considered as deemed sales under sub-clause (d) of Article 366(29A) of Constitution of India and also consequently under Punjab VAT Act and CST Act liable to VAT and CST respectively. Right to use of tangible goods service has also been brought under service tax net by the Finance Act, 2008, w.e.f 16-05-2008 vide notification No. 18/2008-ST, dated 10-05-2008.whereby taxable service has been defined u/s 65(105)(zzzzj) of Finance Act, 1994 to mean as “any services provided or to be provided, to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances”. Sale at duty free shops is outside India, not liable to VAT-Supreme Court0 comments Tuesday, February 7, 2012Supreme Court of India has held in a very important following case that duty free shops are deemed to be outside India and hence sales effected in these duty free shops is sales outside India and during the cource of Import and hence is covered u/s 5 of Central Sales Tax Act, 1961 and hence outside the perview of State Government to levy VAT. Facts: M/s Hotel Ashoka, is managed by India Tourism Development Corporation Limited (hereinafter referred to as `the Corporation’). The Corporation is having its duty free shops at all major International Airports in India. At the said duty free shops, the appellant sells several articles including liquor to foreigners and also to Indians, who are going abroad or coming to India by air. We are concerned with a duty free shops situated at an International Airport at Bengaluru. The appellant is registered as a dealer under the Act as well as under the Central Sales Tax Act, 1956 (hereinafter referred to as `the Central Act’). In the return filed under the Act as well as under the Central Act for the relevant period, the appellant had stated that though liquor, cigarettes, perfumes and food articles were sold at the duty free shops at the Bengaluru International Airport, no tax was payable by the appellant as the goods which had been sold at the duty free shops were sold directly to the passengers and even the delivery of goods at the duty free shops was made before importing the goods or before the goods had crossed the customs frontiers of India. The Appellant contended no tax can be levied under the Act or under the Central Act when the goods are sold in the course of import or before the goods have crossed the customs frontier of India as per the provisions of Section 5 of the Central Act and so far as the Act is concerned, no tax can be levied, if the sale takes place before the goods crosses the customs frontiers of India as no State can tax the sale or purchase of goods which are outside the concerned State i.e. the State of Karnataka in the instant case, as per the provisions of Article 286 of the Constitution of India. Inspite of the above stand of the appellant, the assessing authority directed to pay a sum of Rs.4,20,70,900/- by way of sales tax. Aggreived by it the writ petition was filed before single bench of Karnataka High Court which was dismissed stating that the appellant should exhaust alternative remedy of filing appeal. On further appeal to division bench of the High Court the same was dismissed upholding the decision of single Judge. On Appeal to Supreme Court it was held as under: It is an admitted fact that the goods which had been brought from foreign countries by the appellant had been kept in bonded warehouses and they were transferred to duty free shops situated at International Airport of Bengaluru as and when the stock of goods lying at the duty free shops was exhausted. It is also an admitted fact that the appellant had executed bonds and the goods, which had been brought from foreign countries, had been kept in bonded warehouses by the appellant. When the goods are kept in the bonded warehouses, it cannot be said that the said goods had crossed the customs frontiers. The goods are not cleared from the customs till they are brought in India by crossing the customs frontiers. When the goods are lying in the bonded warehouses, they are deemed to have been kept outside the customs frontiers of the country and as stated by the learned senior counsel appearing for the appellant, the appellant was selling the goods from the duty free shops owned by it at Bengaluru International Airport before the said goods had crossed the customs frontiers.(Para 18) Upon perusal of the aforestated provision of Section 5 of the Central Act, it is clear that a sale or purchase of goods shall be deemed to take place in the course of import of the goods into the territory of India only if sale or purchase takes place before the goods have crossed the customs frontiers of India. Looking to the aforestated legal position, it cannot be disputed that the goods sold at the duty free shops, owned by the appellant, would be said to have been sold before the goods crossed the customs frontiers of India, as it is not in dispute that the duty free shops of the appellant situated at the International Airport of Bengaluru are beyond the customs frontiers of India i.e. they are not within the customs frontiers of India. If this is the factual and legal position, in our opinion, looking to the provisions of Article 286 of the Constitution, the State of Karnataka has no right to tax any such transaction which takes place at the duty free shops owned by the appellant which are not within the customs frontiers of India. (Para 30)They(Revenue)again submitted that `in the course of import’ means `the transaction ought to have taken place beyond the territories of India and not within the geographical territory of India’. We do not agree with the said submission. When any transaction takes place outside the customs frontiers of India, the transaction would be said to have taken place outside India. Though the transaction might take place within India but technically, looking to the provisions of Section 2(11) of the Customs Act and Article 286 of the Constitution, the said transaction would be said to have taken place outside India. In other words, it cannot be said that the goods are imported into the territory of India till the goods or the documents of title to the goods are brought into India. Admittedly, in the instant case, the goods had not been brought into the customs frontiers of India before the transaction of sales had taken place and, therefore, in our opinion, the transactions had taken place beyond or outside the custom frontiers of India. In works contract of constructing national highway purchase of consumables like Diesel, LDO, Furnace oil against C form can be made3 comments Friday, October 14, 2011Rajsthan High court has held in Commercial Tax Officer, Sirohi Vs. Agarwal J.V that a works contractor, for construction of national highway, can purchase diesel., LDO, Furnace oil and other materials against C form. In this case it was argued on behalf of the Department that the pre-condition for availing the benefit under C- Form is that the purchaser must use the goods inter alia for manufacturing or processing; but, this is not the case of the respondent. More so, the respondent is work contractor. F forms misplaced by the department-revisional proceedings on the ground that F forms not available on file, are bad in law0 comments Tuesday, September 27, 2011Punjab VAT Tribunal has held in an important case namely Mahavir Vanaspati Company Vs State of Punjab revision No 13 of 2010 (2011) 17 STM (JS) 278 decided on December 23, 2010 that starting of revisional proceedings on the ground that F forms were not available on the files were bad in law and petitioner could not be held liable to pay CST on the ground that the consignment sales were to be treated as inter-state sales for want of F forms or due to registration of the Consignees firms cancelled or those firms not filing regular returns in those States or paying tax.
Piston Rings are declared goods under CST Act-P&H HC0 comments Wednesday, September 7, 2011Facts: The assessee is a taxable person under the provisions of the Punjab VAT Act, 2005 and is manufacturing and selling pistons and piston rings used in automobiles. For the year in question, the assessee calculated and paid tax @ 4% by treating the goods in question to be ‘declared goods’. The Assessing Authority did not accept the classification claimed by the assessee and held the goods to be ‘automobile parts’ falling in residue entry taxable @ 12.5%. C forms cannot be declared invalid if the purchaser ceased to exist while issuing and seller is unaware of it- Karnataka HC0 comments Monday, August 8, 2011Karnataka High Court has held in an important case namely Bell Ceramics Ltd. Vs DCCT that if the purchaser of goods issuing C forms has ceased to exist at the time of issuing C forms and such fact is not known to the seller of such goods claiming concessional rate of CST on the basis of such C forms then no disallowance of such concessional rate can be made to the seller on this ground.
Seller not liable to pay tax or penalty, if C forms given by Purchaser found to be not genuine afterwards- Madras High Court0 comments Tuesday, May 31, 2011The Madras High Court in an important judgement delivered in case of M/S Sastha Enterprises Vs. Appellate Authority, Commissioner(CT) II (FAC) [VSTI 2011 MAD B-165] has held that selling dealers cannot be held for higher tax liability and consequential penal action for false declaration of the documents produced on the side of Buyer. In this case the seller was held liable in reopened assessment case, to pay tax by rejecting in transit sales on the ground that the C form obtained from the purchaser was found to be not genuine as the same was not issued by the concerned Assessing Authority. Hon’ble High Court in this case held that unless and otherwise it is, based on concrete material, found out that the transaction is not true or the petitioner-seller is the party to the act of fraud said to be committed by the purchaser, the question of disallowing the exemption already given to the petitioner for the transaction actually effected between the parties, does not at all arise. Section 9(2B) of CST Act is applicable retrospectively0 comments Monday, May 23, 2011Section 9(2B) of Central Sales Tax Act 1956 provides for interest on delayed payment of CST as per the general sales tax law of the State concerned. This provision was added we.f 12-05-2000 by section 120 of the Finance act 2000, Prior to it there was no such provision for levy of interest under CST Act. The Punjab & Haryana High Court has held in State of Haryana v Giriraj Metal and Ferro Alloys (2011) 39 PHT 101 (P&H) that the said provision u/s 9(2B) will be applicable with retrospective effect i.e w.e.f 05-01-1957(from the date of CST Act) following the decision of Supreme Court in case of Indodan Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1 Stainless Steel wire is not declared goods under CST Act 1956- Supreme Court0 comments Friday, May 20, 2011Supreme Court in an important decision in a case namely Bansal Wire Industries Ltd. Versus State of U.P. has held that Stainless Steel wire is not covered under declared goods u/s 14 of CST Act 1956. The Apex court held that stainless steel doesnot fall in the entry of Tools, alloys and special steels under Iron and steels. State Governments are now free to levy VAT on Sugar and Textiles0 comments Friday, May 13, 2011The Union government has allowed the states to impose tax on sugar and textiles for the first time in 54 years. In the finance Act of 2011 the Additional Duties of Excise (goods of special importance) Act, 1957 has been amended. Sugar and textile have been removed from the first schedule of the said Act. After this amendment, states are free to levy value added tax on sugar and textile.These commodities were put under the scheduled commodities, with the enactment of the Additional Duties of Excise Act in 1957 by the Nehru government.
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