ERA INFRA ENGINEERING LTD Vs. STATE OF CHHATTISGARH

JUDGEMENT

(1.) The appellant would assail the order passed by the learned Single Judge dismissing its petition in which the challenge was to the revisional order passed by the Additional Commissioner, Commercial Tax, Raipur, on 3-4-2017 and the order dated 22-12-2015 passed by the Regional Deputy Commissioner, Commercial Tax, Bilaspur, whereby the appellant has been saddled with the liability to pay the Value Added Tax (henceforth 'the VAT') at the rate of 12.5% chargeable for 'cable' instead of tax at the rate of 4%, which the appellant had paid declaring the goods as 'industrial cable'.

(2.) The appellant executed a work contract with the Railways pertaining to Railway Signaling/Communication cables during the assessment year 2007-08. The appellant submitted its return, which was, later on, subjected to audit wherein an objection was raised as to the rate of tax to be levied on the cable purchased by the appellant for executing the work contract. The audit objection, to be precise, was that instead of the amount of 4% tax paid by the appellant treating the cable as industrial cable, the appellant should have paid the tax at the rate of 15%, as the cable used by it was simple cable and not electrical cable. The appellant, thus, concealed and evaded tax to the tune of 8.5%.

(3.) The learned Single Judge dismissed the writ petition on the ground that the appellant has not produced any material to satisfy the authorities that the cable used by it was industrial cable, therefore, the appellant has not discharged the burden lying on it to satisfy that it has paid the appropriate tax.