Case Law Details

Case Name : J. K. Cement Ltd. Vs State of Rajasthan (Rajasthan High Court, Jodhpur)
Appeal Number : S.B. Civil Writ Petition No. 5699/2020
Date of Judgement/Order : 24/07/2020
Related Assessment Year :

J. K. Cement Ltd. Vs State of Rajasthan (Rajasthan High Court)

Rajasthan High Court Grants Interim Relief To J.K. Cement Ltd. From Being Exposed To High Tax Demand Under Rajasthan Vat Act And Central Sales Tax Act.

Commercial Tax Department of State of Rajasthan issued Notices and Summons to the cement manufacturing company, JK Cement Ltd. for reopening of the assessment for Financial Years 2014-15, 2015-16, 2016-17, 2017-18 under Rajasthan Value Added Tax, 2003 and Central Sales Tax Act, 1956. The Commercial Tax Department issued Notices to the Company on 06.07.2020 for different financial years while considering the issuance of Diesel to its work agencies to be sale under the Act and on that pretext, the Company be imposed with huge tax, interest and penalty, thereupon, for the sale consideration received by company.

Being aggreived, the Company preferred writ petitions before the Rajasthan High Court at Jodhpur while assailing the validity of Notices and Summons  issued by the Tax Department which are in due ignorance of law and with legal mala fide and ignoring the earlier concluded assessment for same financial  years.

Senior Advocate Mr. Ravi Bhansali assisted by Mr. Ramit Mehta and Mr. Saurabh Maheshwari appeared for the petitioners and advanced arguments that the Notices under challenge are without jurisdiction and on misconceptions of the Department. The petitioner company provides Diesel to the work agencies under arrangement and does not charge any single amount for the same.The Department has wrongly and without any material evidence concluded in Notice that the petitioner company makes sale to other business entities while collecting consideration. It was specifically argued that the petitioner company does not charge and collect even a single penny and thus, it is grossly wrong on part of the Department to assume such arrangement to be Sale and reopen the settled assessment while imposing tax, interest and penalty.

The bunch of the writ petitions was heard at length by the Hon’ble Mr. Justice Pushpendra Singh Bhati and vide order dated 24.07.2020, the Hon’ble Court duly stayed the effect and operations of the impugned notices while issuing notices to the Respondent arrayed in the writ petitions and matter be kept after 6 weeks.


In wake of onslaught of COVID-19, abundant caution is being taken while hearing the matter in Court.

Issue notice to the respondents, returnable within six weeks.

In the meanwhile, effect and operation of the impugned notices dated 20.03.2020, 06.07.2020 and summon dated 27.12.2019 shall remain stayed.

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April 2021