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2017 (8) TMI 1259 - HC - VAT and Sales TaxRegistration under TNVAT Act - Whether sale and purchase activity was carried from its registered office situated in Tamil Nadu - IEC code taking in the name of registered office - Detention of goods - Held that: - The admitted position is that the petitioner which has unincorporated joint venture is not a registered dealer in the State of Tamil Nadu under the provisions of Tamil Nadu Value Added Tax Act or the Central Sales Tax Act. However, the petitioner is a registered dealer under the provisions of the Andhra pradesh Value Added Tax Act. The import has taken place in the project work done by the petitioner at in the State of Andhra Pradesh. Therefore, it is to be seen as to whether merely because a branch or liaison office established in Chennai, would run the transaction as a sale within the State - the answer would be negative. Thus, there is nothing on record to show that the joint venture with address at Chennai had sold the goods to the Joint venture with address at Andhra Pradesh. It may not be true that the Import and Export Code has been obtained in the name of the petitioner joint venture, giving the Chennai address, that by itself will not create a doubt in the transaction nor permit the transaction as a sale within the State of Tamil Nadu. For such interpretation given, it would be contrary to the section 5 (2) of the Central Sales Tax Act which provides that a sale or purchase of goods shall be deemed to be take place in the course of import of the goods into the territory of India only if the sale or purchase either occasions such import or is effected by a transfer of documents or title to the goods before the goods have crossed the customs frontiers of India. I have no hesitation to conclude that there is no element of sale within the State of Tamil Nadu and the respondent cannot instruct upon the petitioner to register themselves under the TNVAT Act and merely because the Import and Export Code is from the office in Tamil Nadu cannot be a feature to doubt any transaction - petition allowed - decided in favor of petitioner.
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