Case Law Details
Commissioner Vs R.P. Milk Made Products (P) Ltd. (Allahabad High Court)
The Allahabad High Court recently delivered a significant judgment in the case of Commissioner Vs R.P. Milk Made Products (P) Ltd., addressing the applicability of the Uttar Pradesh Value Added Tax (UPVAT) on the sale of plant and machinery post-business closure. The court’s decision, rooted in the interpretation of Section 2(e) and Section 2(f) of the UPVAT Act, has far-reaching implications for businesses undergoing liquidation or cessation of operations.
Background of the Case
The case originated from a revision petition filed by the state’s commercial tax department, challenging the Commercial Tax Tribunal’s decision which exempted the sale of old machinery and equipment from taxation. The core issue revolved around whether the sale of these items, categorized as capital goods, post-business closure, should be taxed under the amended provisions of the UPVAT Act.
Legal Framework
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