COMMERCIAL TAXES OFFICER NIMBAHERA Vs. RAJENDRA KUMAR

JUDGEMENT

(1.) This revision petition under Section 7 of the Rajasthan Tax on Entry of Motor Vehicles into Local Areas Act, 1988 ('the Act of 1988') read with Section 84 of the Rajasthan Value Added Tax Act, 2003 is directed against order dated 24.6.10 passed by the Rajasthan Tax Board, Ajmer, whereby the appeal preferred by the Assessing Authority against the order dated 3.10.07 of the Deputy Commissioner (Appeals), setting aside the assessment order dated 13.2.07, stands dismissed. The relevant facts in nutshell are that the respondent purchased a motor vehicle from M/s. Patwa Abhikaran, Nimach, (M.P.) vide sale invoice No. 318 dated 29.11.04, entry whereof was effected into local area of State of Rajasthan. The vehicle was got registered in the State of Rajasthan with the concerned Registering Authority on 21.12.04. As per provisions of Section 3 of the Act of 1988, the tax is leviable on the motor vehicle brought within the local area of State of Rajasthan and liable to be registered therein at the rate notified by the State Government. However, the respondent neither produced the Form ETI alongwith the purchase bill at the entry check post in conformity with the provision contained in Rule 4 of the Rajasthan Tax on Entry of Motor Vehicles into Local Areas Rules, 1992 ("the Rules") nor deposited the tax with the authority concerned and, therefore, the Assessing Authority issued a notice dated 23.11.06, directing the respondent to produce the purchase bill so as to assess the liability of tax on the purchase value of the motor vehicle in conformity with the provisions of Section 3 of the Act of 1988 and penalty in terms of provisions of Section 6 of the Act of 1988.

(2.) The respondent filed a reply to the notice contending that the amount of tax leviable on purchase value of the motor vehicle entry whereof has been effected within the local area is equivalent to the amount to the tax already paid by him under the law relating to General Sales Tax in force in the State of Madhya Pradesh and thus by virtue of provisions of Section 4(2) of the Act of 1988, he is entitled for adjustment and, therefore, no tax is payable. That apart, the respondent contended that after expiry of period of 2 years from the date of transaction of sale, the proceedings initiated by the Assessing Authority for assessment of tax under the Act of 1988 is barred by limitation.

(3.) After due consideration of submissions of the assessee made as aforesaid, the Assessing Authority opined that since the respondent has not produced the Form-ETI in terms of provisions of Rule 3 of the Rules, therefore, he is not entitled for reduction in the tax liability as claimed in terms of provisions of Section 4(2) of the Act of 1988. Regarding the assessment proceedings being barred by the limitation, the Assessing Authority observed that since the entry of vehicle was effected into local area on 21.12.04 and the proceedings for assessment of tax against the respondent were initiated prior to it, therefore, the assessment proceedings cannot be treated to be barred by limitation. The Assessing Authority assessed the liability of tax, interest and penalty vide assessment order dated 13.2.07 and created a demand for Rs. 55,617/- against the respondent.