VIKASH REXINE HOUSE Vs. STATE OF M.P.

JUDGEMENT

(1.) Heard. The petitioner has filed this petition against the orders dt. 20.12.2012 (Annexure P/1) and dt. 20.12.2012 (Annexure P/2).

(2.) By the aforesaid orders, tax of Rs. 55,96,038/- and Rs. 11,72,772/- including the penalty has been imposed against the petitioner under the provisions of M.P. VAT Act, 2002 (hereinafter referred to 'VAT Act).

(3.) The petitioner is a registered dealer under the provisions of VAT Act. He was awarded registration TIN No. 23935302638. The dispute in the present petition relates to the assessment years of 1.4.2007 to 31.3.2008 and 1.4.2008 to 31.3.2009. The petitioner had submitted return regularly and he also paid the tax payable by him under the VAT Act. He was assessed for both the periods vide orders of assessment dt. 25.5.2010 and 28.1.2010. Subsequently, an audit objection was raised by the Audit Officer that a tax @ 4% was imposed, however, the rate of tax on coir matrix was 12.5% because in accordance with Entry No. 25 of Part 2 of Schedule II published under Section 9(1) the VAT Act, the coir and coir products in which coir matrix was not included, the rate of tax was 5% and the rate of tax on coir matrix would be 12.5% treating as a part of residual entry of Part 4 of Schedule II. The petitioner pleaded that he purchased the coir products from M/s. Bamore Foam Pvt. Ltd. and sold the same.