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2014 (2) TMI 150 - HC - VAT and Sales TaxInterstate sale or local sale - place of compliance of the contract - head office at Chennai and factory at Pondicherry - the factory at Pondicherry manufactured the required type of laminated H.D.P.E., fabrics and despatched the same to Tamil Nadu to give the shapes of the sacks as per requirement of the parties and to have the logos inprinted thereof. - Penalty u/s 12(3) of the Tamil Nadu General Sales Tax Act - Held that:- an appropriation for the purposes of an inter-State sale would be completed, only in respect of goods, which are earmarked for a particular customer. - Even though, the fabric might have been manufactured to the specifications, yet given the fact that the contract is not for the fabric as such, but for stitched sacks on a specified shape, and the compliance of the contract itself arose only in Tamil Nadu, we fail to understand that the mere despatch of fabric, which incidentally might have fitted in with colour or the textiles would not by itself result in appropriation to the contract placed by the customer - Tamil Nadu State was the only State competent to levy Sales Tax. - Decided against the assessee. Whether the assessment is best judgement assessment or not - Held that:- The mere fact that the turnover were culled out from the books of accounts by itself does not mean the assessment is not a best of judgment assessment. The material based on which the best of judgment thus made being the account books, we do not find any justifiable grounds to accept the plea of the assessee that the assessment is one based on books and hence not the best of judgment assessment. - Decided against the assessee. Levy of penalty - Held that:- he transaction is a of local sale, in the background of the admitted fact that the order placed by customers were for supply of sacks of specified description, we hold that the facts herein certainly attract the provisions under Section 12(3) of the Central Sales Tax Act - however taking lenient view instead of the maximum penalty, the levy of penalty at 50% imposed.
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