P K PLASTICS Vs. COMMISSIONER OF COMMERCIAL TAX

JUDGEMENT

(1.) Petitioner has assailed the correctness of the order dated 5/8/2010 passed by the Commissioner (Commercial Tax) Madhya Pradesh, Indore under Section 70 of the Madhya Pradesh VAT Act, 2002 (for short "the Act").

(2.) Petitioner is engaged in the business of purchase and sale of plastic and steel items such as water jug and bottle, lunch box etc. Petitioner was assessed to tax on the sale of these items @ 4% from 1/4/2006 to 31/7/2009 and @ 5% after 1/8/2009. Petitioner had filed the application before the Commissioner under Section 70 of the Act for determining the rate of tax on the items purchased and sold by the petitioner. The Commissioner, by order dated 5/8/2010 held that only the water jug is covered within the meaning of utensils in the Entry 6 of Part II of Schedule II of the Act and taxable @ 5% and that the remaining items are covered by the Entry 1 Part IV of Schedule II of the Act taxable @ 13%. The Commercial Tax Officer in the mean while issued the notice dated NIL (Annexure P.3) for the block assessment for the period 1/4/2006 to 26/12/009 intending to make the block assessment and levy tax @ 13% on the sale of the items in question. Aggrieved with the same, the petitioner has filed the present Writ Petition.

(3.) The stand of the respondent is that the petitioner had furnished the quarterly returns under the Act disclosing the turnover taxable @ 4% till 31/7/2009 and @ 5% after 1/8/2009 and had paid the tax accordingly and there was deemed assessment under Section 20-A of the Act. The petitioner's case was later taken in scrutiny. Further case of the respondent is that the Commissioner has rightly passed the order under Section 70 of the Act and has rightly held that except for water jug, the other items in question are taxable @ 13% under Entry 1 Part IV of Schedule II of the Act, and therefore, the commercial tax officer has rightly issued the notice for making the block assessment for the period 1/4/2006 to 26/12/2009.