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2018 (12) TMI 1743 - HC - VAT and Sales TaxLevy of purchase tax - purchase of pulses, grams and chillies from vendors whose turn over admittedly does not exceed ₹ 5,00/- crores in an assessment year - sale of goods to other States to their branches/agents for making consignment sales - Section 12 of the TNVAT Act, 2006. The pointed contention of the petitioners counsel is that even though the goods on hand can be brought within the purview of Entry No.41 Part B of the First Schedule, applying the general principle of law that the special will prevail over the general, the goods in question will have to be necessarily treated as exempted goods. HELD THAT:- The IV Schedule is in two parts. Part A and B. Part A has been omitted by Tamil Nadu Act No.30 of 2011. There is only Part B now. There are as many as 81 Entries in part B. If one runs through the various entries, it can be seen that Entry 1(i) to Entry 64(A) refer only to goods - Entry 68, does not exempt the goods as such. It only exempts the transactions, namely, sale of the goods referred to therein if purchased from any dealer whose turn over in respect of the goods does not exceed ₹ 5,00/- crores in a year. For the said provision of section 12 to apply, a sale or purchase in respect of the goods must be liable to tax. The goods on hand can obviously be not brought within the scope of Entry 41 of Part B of First Schedule only because of the specific entry, namely, Entry 68 in Part B of the IV Schedule. They are not levied with tax in the turn over of the seller is below ₹ 5,00/- crores. Therefore, the phrase “in circumstances in which no tax is payable” will get attracted - It can be seen from Section 12(1) of the Act and it can be seen from the counter affidavit filed by the respondents that there is a larger object behind incorporation of Section 12 of the Act. It was introduced to ensure that the State will not lose its revenue at least at one stage. The petitioners after purchasing the goods in question have transferred the same to their branches/agents, who are in other States by effecting consignment sales. The stand of the respondent authority will have to be sustained - Petition dismissed.
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