earlier years (1978-1981) towards its
purchase tax liability. It appears that the liability to pay purchase
tax on certain goods was in dispute ... that as late as 1993, the sales
tax department was pursuing the issue relating to purchase tax
liability of the assessee from the assessment year
assessee
made a provision in the books of account towards purchase tax liability
which was in dispute. Under the impression that the dispute was finally ... made during earlier
years towards purchase tax. It was sought to be taxed by the Income-tax
department treating the same as the income
point of time
when the liability to pay tax arises. Under
that provision, as here, the liability to pay
purchase tax on the raw material ... broad sense, create -- the levy of
purchase tax in some cases and to provide
for exemption from purchase tax in certain
other specified situations. This
assessment was sought to be reopened only to add back the purchase tax liability and when that plea did not survive, the question regarding ... survive due to directions of the IAC not to add back purchase tax liability.
Held by Honble High Court : We are of the view that
point of time
when the liability to pay tax arises. Under
that provision, as here, the liability to pay
purchase tax on the raw material ... broad sense, create -- the levy of
purchase tax in some cases and to provide
for exemption from purchase tax in certain
other specified situations. This
assessment was sought to be reopened only to add back the purchase tax liability and when that plea did not survive, the question regarding ... survive due to directions of the IAC not to add back purchase tax liability.
Held by Hon'ble High Court
lakhs
Excise duty - 89.28 lakhs
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Total - 610.10 lakhs
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As regards the purchase tax liability of the company, they have to pay
13.25% of the cane ... about Rs.9,48,93,922/79, for which the
purchase tax liability works out to Rs.1,28,10,608/-. It was pointed
admitting to be the first purchaser and accepting the liability to pay trade tax on purchase of goods, shall be conclusive evidence of his liability ... tax and it has been held that even avoidance of tax is not permissible. There is no question of avoidance of such tax liability
addition of purchase tax and Revenue with the deduction of sales tax. Hence these appeals.
3. Purchase tax was in respect of purchase of cotton ... sale price, the price of cotton or its liability to purchase tax were not relevant for the assessment of yarn. This view is entirely
Andhra Pradesh General Sales Tax Act, 1957
ANDHRA PRADESH
India
Andhra Pradesh General Sales Tax
