BONIE APPARELS PVT. LTD. AND ANOTHER Vs. SALES TAX OFFICER, BELIAGHATA CHARGE AND OTHERS
SALES TAX TRIBUNAL
Bonie Apparels Pvt. Ltd. And Another
Sales Tax Officer, Beliaghata Charge And Others
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PRANAB KUMAR DEB, J. -
(1.) THIS instant application under section 8 of the West Bengal Taxation Tribunal Act, 1987 has been filed, challenging the revised assessment order dated August 26, 2010 passed by the Sales Tax Officer, Beliaghata Charge. The contention of the petitioners, as made out in their application, is to the effect that petitioner No. 1, M/s. Bonie Apparels Pvt. Ltd., exported readymade garments with hangers worth Rs. 16,56,67,202. In view of export of readymade garments with hangers, the articles were exempted from tax under section 5 of the Central Sales Tax Act, 1956. Appreciating the stand that readymade garments with hangers had been exported, the input -tax credit was allowed in favour of the petitioners. The order of assessment for four quarter ending on March 31, 2007 was, however, revised by the Sales Tax Officer, Beliaghata Charge, after service of notice in form 70. The Sales Tax Officer viewed that since the hanger was not an integral part and parcel of the garments and the goods, i.e., plastic hangers, were not used as packing material either, the petitioners were not entitled to input -tax credit in respect of export of plastic hangers. Accordingly, claim of input -tax credit to the tune of Rs. 5,17,668.58 was disallowed.
(2.) Aggrieved by the disallowance of ITC in respect of the purchase of plastic hangers amounting to Rs. 5,17,668.58, the petitioners have filed the instant application for redressal of their grievances.
(3.) APPEARING on behalf of the petitioners, Mr. Ghosh has submitted that in view of order being placed for, supply of readymade garments with plastic hangers, the entire articles, i.e., readymade garments with plastic hangers are liable to be treated as zero -rated sales on which no tax is chargeable but credit for the input -tax related to that sale is admissible. Referring to the provision of section 21A of the Value Added Tax Act, 2003, Mr. Ghosh has submitted that when the goods are sold in the course of export within the meaning of section 5 of the Central Sales Tax Act, 1956, such sales shall be zero -rated, as defined in clause (59) of section 2. It is argued that export of readymade garments with plastic hangers forms part of the same transaction and, therefore, purchase of the plastic hangers cannot be excluded from the purview of input -tax credit, as has been illegally done by the Sales Tax Officer, Beliaghata Charge, by issuing a revised order.;
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