While debarring the advocates and retired sales tax officials from certifying sales tax documents, the Supreme Court on Tuesday said only Chartered Accountant or Cost Accountants are eligible to audit the sales tax returns of a company.
A bench of Justices H K Sema and Markenday Katju upheld the Bombay High Court’s judgement that held only chartered or cost accountants to certify or endorse the sales tax returns.
The decision will affect the lawyers specialising in sales tax laws and former sales tax officers who are working as sales tax practitioners.
“There must be judicial restraint. We will not interfere. Tell legislature to amend the law,” Justice Katju observed while dismissing the petitions filed by the Sales Tax Practitioners’ Association of Maharashtra and the Bar Council of Maharashtra.
The High Court while upholding an amendment to Maharashtra Value Added Tax Act had observed that “the objective is to facilitate prevention of evasion of tax.”
The Act makes it mandatory for traders - with annual sale of over Rs 40 lakh - to file sales tax returns verified only by chartered or cost accountants.
The High Court said as per the Advocates’ Act, 1961, advocates can only practice law.
Land for Nano
The Supreme Court on Tuesday said it would examine the validity of the acquisition of land in Singur by the West Bengal Government for the Tata Motors Ltd. to set up its Nano car project.
After hearing the preliminary arguments, the court asked the Tata Motors Ltd, the West Bengal Industrial Development Corporation and the West Bengal Government to file their replies to the allegations by some of farmers that their fertile land had been forcibly acquired by the Government.
