Delve into a complex legal analysis by the court regarding the term ‘Casual Trader’ under the Rajasthan Tax Law. The case not only explores the definition but also delves into the specific criteria that determine the classification of individuals under this category. Stay tuned to unravel the intricacies of tax law interpretation.
Facts
- On 11 July 2012, summons were issued to the Respondent under Sections 3, 6, and 7 of the Rajasthan Tax on Entry of Motor Vehicle into Local Areas Act 1988.
- An Assessment Order dated 9.10.2012 was passed, levying tax, penalty, and interest on the Respondent amounting to Rs. 3,00,376/-.
- The Rajasthan Tax Board rejected the Respondent’s appeal on 8.10.2018, leading to a further appeal to the Appellate Authority, Commercial Tax Department, Bharatpur.
- The key contentions raised by the Respondent during the appeal process included issues related to receiving summons post the mentioned date and the Assessment Order being beyond the statute of limitations.
- A revision petition filed by the Petitioner was dismissed by the High Court on 9.7.2020, leading to the current Special Leave Petition.
- Appellate Authority allowed the appeal of the Respondent.
- Assessment Order impugned was set aside.
- Respondent was considered a ‘Casual Trader’.
- Limitation for passing Assessment Order against him was only 2 years from the date of the transaction.
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Arguments
- The main contention of the Petitioner is that a single transaction of purchase of a motor vehicle does not qualify as a ‘Casual Trader.’
- The term ‘Casual Trader’ is defined as involving occasional transactions of business that include buying and selling of goods.
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Analysis
- Provisions of the Rajasthan Sales Tax Act, 1954 apply to offences and penalties under this Act
- Authorities empowered under the Rajasthan Sales Tax Act can assess, reassess, and collect tax under this Act
- Penalty may be imposed on non-compliance, not exceeding fifty per cent of the tax amount
- Casual Traders must report transactions to Assessing Officer and deposit tax
- Time limit for assessment of Casual Traders is one year from report date or two years from transaction date
- Provisions of the Rajasthan Sales Tax Act, 1954 apply mutatis mutandis for tax, penalty, and interest under this Act
- Definition of ‘Casual Trader’ and provisions for assessment in case of failure to report specified goods
- Assessment was not barred upon expiry of two years from the date of transaction
- The deadline for assessment was not 25/26.12.2011
- The court decided that there was only a single transaction in this case.
- Based on this single transaction, the Respondent could not be categorized as a ‘Casual Trader.’
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Case Title: COMMERCIAL TAXES OFFICER Vs. M/S BHAGAT SINGH (2021 INSC 36)
Case Number: SLP(C) No.-015870 / 2020
