AGARWAL ADVERTISING AGENCY Vs. STATE OF U.P.

JUDGEMENT

(1.) Heard Sri Shiva Nand Pandey, learned counsel for the petitioner and learned Standing Counsel for the State respondents.

(2.) Challenge in this petition has been made to the assessment order passed by the respondent no. 2 imposing a liability of Rs. 3,19,500.00 towards Value Added Tax (VAT) on purchase of advertising materials.

(3.) Learned counsel for the petitioner contends that VAT is not liable to be imposed on purchase of the advertising materials and during the previous assessment years also whenever the VAT was imposed it was set aside in appeal. Learned counsel for the petitioner further contends that without there being any legal provision for no rhyme and reason every assessment year this tax is imposed upon the petitioner making it contest the proceeding in appeal unnecessarily. It is also contended that in the entire district of Muzaffarnagar it is only the petitioner which is singled out by the respondents for imposing VAT and on no other dealer, VAT has been imposed on purchase of advertising materials.