Tim Delhi Airport Advertising … vs Special Commissioner – Ii, … on 2 May, 2016

1. The Petitioner, a company incorporated under the Companies Act,

1956, has filed the present petition under Articles 226 and 227 of the

Constitution of India, inter alia, impugning separate notices of default

assessment dated 5th August, 2013 whereby the Petitioner’s entire

turnover for the period 2010-11 and 2011-12 has been assessed to Value

Added Tax (VAT) and penalty and interest has also been levied in

W.P.(C) 1625/2014 & CM No.3374/2014 Page 1 of 23
addition to the tax assessed. The Petitioner also impugns an order dated

7th February, 2014 as rectified by an order dated 13 th February, 2014

passed by the Special Commissioner (VAT) directing a deposit of

Rs.3,14,00,000/- – being 20% of the disputed demand of VAT and

interest for the period 2011-12 – as a pre-condition for hearing the

objections filed by the Petitioner in respect of demand raised for the

financial year 2011-12. In addition, the Petitioner also impugns a ruling

dated 6th April, 2011 made by the Commissioner (VAT) under Section 85

of the Delhi Value Added Tax Act, 2004 (hereafter ‘the DVAT Act’)

whereby the Commissioner has held that advertisement hoardings, panels,

display boards, kiosks etc. are „goods‟ as defined under Section 2(m) of

the Act and the advertisers are liable to pay VAT on the revenue received

on account of deemed sale resulting from transfer of the right to use the

said hoardings, panels, display boards, kiosks etc. A further challenge is

also laid to the notices under Section 59 of the DVAT Act dated 8 th May

2013 and 21st October 2013 requiring the Petitioner to produce the

documents stated therein for the period of 2012-13.

Source: Indian Kanoon

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