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2013 (12) TMI 629 - HC - VAT and Sales TaxApplicability of Explanation 3 to Section 2(r) of the Tamil Nadu General Sales Tax Act, 1959 - Revenue was of the view that the separate value given to immovable and movable assets, intangible and tangible assets – Held that:- The intention of the parties was to sell Thoraipakkam and Ranipet Units, the authorities including the Sales Tax Appellate Tribunal committed serious error in holding that there was separate sale of immovable assets and movable assets by referring to the balance sheets and profit and loss account produced before the authorities - when the parties to the agreement had agreed upon the value for the sale of two units - the assessee had not agreed to piecemeal sale of business, on the mere fact that the purchaser had given the value of the immovable assets and movable assets separately by itself would not defeat the claim of the assessee for exemption from taxation - The sale of the entire stock-in-trade as such could not be treated as sale of business in entirety - the assessee continued to be in business and retained business in those units, the question of exclusion of turnover relating to stock in trade does not arise. The bifurcation of the price would not in any manner go against the intention of the parties viz., sale of entire unit at Thoraipakkam and Ranipet in favour of the purchaser and going by the various terms of the agreement - there was no justifiable ground to accept that the sale consideration would form part of the turnover – Following Deputy Commissioner (C.T)., Coimbatore Vs. K.Behanan Thomas [1976 (4) TMI 202 - MADRAS HIGH COURT] - when there is transfer of business as a whole even if it be an unit, were two independent units, Explanation 3 to Section 2(r) of the Tamil Nadu General Sales Tax Act, 1959 cannot be attracted to the assessee - The demand as well as the penalty levied on the assessee set aside – Decided in favour of Assessee.
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