INTER GOLD INDIA LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) By the present petition the petitioners seek to challenge the order of assessment whereby the petitioners have been held liable to pay Purchase Tax (Purchase Tax) on gold purchased from MMTC under a Replenishment License under Section 13AA of the B.S.T. Act. The petitioners are also aggrieved by the action of the respondents in charging purchase tax on a vehicle purchased for the use of its employees as also consequential charging of interest under Section 36(3)(b) and penalty under Section 36(2)(c) (Explanation 1) as also penalty under Section 36(4A) of the Bombay Sales Tax Act.

(2.) A show cause notice was issued to the petitioners. The petitioners filed their reply to the said show cause notice on 3rd October, 1997 denying their liability to pay purchase tax on purchase of gold. There was no specific denial in so far as purchase tax on the purchase of vehicle. The A.O., was pleased to pass an order of assessment which was served on the petitioner on 28th November, 1995.

(3.) The petitioners being aggrieved by the order preferred an appeal before the Appellate Authority. In the course of the Appeal, the Appellate Authority was of the opinion that the S.T.O., while assessing the Appellant did not levy P.T. under Section 13AA, though the goods fall into Part I of 'C' Schedule attached to B.S.T. Act, 1959. A show cause letter was issued asking the appellants as to why P.T. Under Section 13AA should not be levied along with consequential interest under Section 36(3)(b). The Petitioners filed reply to the show cause notice describing the procedure for purchase of gold from M.M.T.C. The petitioners also relied on various documents including Customs Notification. It was the submission of the petitioners that purchase tax under Section 13AA was not payable and alternatively if the P.T., is held to be leviable then set off under Section 42(1) be granted to the petitioners.