Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2017 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 1304 - HC - VAT and Sales TaxLevy of purchase tax - Section 7(A) of the TNGST Act - sale of Turmeric and Turmeric Powder - The case of the petitioners is largely based on the decision of the Hon'ble Division Bench in the case of Hotel Shri Kannan Vs. State of Tamil Nadu [2007 (4) TMI 623 - MADRAS HIGH COURT], where it was held that Section 7(A) should be a charging section as well as a remedial one, in as much as it levies a tax on the purchases of goods by a dealer from a registered dealer or from any other person who may be either unregistered dealer or other persons such as agriculturists and other producers who are not liable to pay tax under the TNVAT Act on the sales or purchases. Held that: - it would be improper to interdict the proceedings at the very threshold, namely, at the stage of show cause notice. Admittedly, the respondent has jurisdiction to issue the impugned show cause notices and what has now been contested by the petitioners is that they have no power to levy purchase tax. This issue involves adjudication of disputed questions of facts and therefore, the petitioners have to necessarily submit their objections to the impugned notices. The writ petitions are held to be premature and not maintainable - petition dismissed.
|