- (1.) This writ petition has been filed against the order dated 26-7-2012 passed by the Rajasthan Tax Board Ajmer dismissing an application filed by the petitioner for grant of stay of the order dated 22-7-2011 passed by the Dy. Commissioner Appeals, Commercial Taxes Department, Ajmer. The said application was filed along with an appeal under Section 83 of the Rajasthan Value Added Tax Act, 2003 (hereinafter 'RVAT Act').
(2.) Counsel for the petitioner submits that the dispute in the present matter relates to rate of tax determinable on the classification of the goods manufactured by the petitioner company under Entry 163 of Schedule IV of the RVAT Act (4% ad valorem), which relates to sugar candy made of sugar with glucose, but excluding cocoa or Entry (residual) under Schedule V of the RVAT Act (12.5% as valorem). Counsel submits that the petitioner company filed its return treating its goods classification under Entry 163 of Schedule IV and paying tax at the rate of 4% leviable in accordance with law in respect of its goods. However the department taking a different view treated the petitioner's manufactured goods as confectionery and thus pushing them as not otherwise classifiable and hence falling in the residual Entry in Schedule V of the Act of 2003 exigible to 12.5% as valorem tax.
(3.) Counsel submits that the dispute in the present case is not a case of evasion of tax, but the dispute has arisen about rate of tax dependent upon the classification of goods as per the provisions of the RVAT Act. It is submitted that the petitioner company is a good cooperate citizen, and in spite of challenging the classification of its goods wrongly by the department has already paid the amount of differential tax i.e. additional 8.5% tax over the 4% tax already paid. Counsel submits that in the facts obtaining the petitioner's dispute is bonafide and genuine not moonshine and the Tax Board ought to have exercised its discretion to protect the petitioner company from the liability to pay the interest on the additional tax following the order of assessment by the Commercial Tax Officer, Special Circle Ajmer as upheld by the Appellate authority. Instead the application for limited stay on recovery of interest on the disputed differential tax (already paid) has been mechanically dismissed by an unreasoned order.;