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2018 (1) TMI 612 - HC - VAT and Sales TaxWhether the additional sales tax liability of an Agent, is independent of the liability of its principal? Held that: - the petitioner's principal is situated outside the State of Tamil Nadu viz., in Andhra Pradesh, and they have no branch in the State of Tamil Nadu, and the petitioner is the direct agent of the principal, who is an assessee in Andhra Pradesh, and there is a consensus between the petitioner and the principal at Andhra Pradesh - the decision in the case of Siemens Ltd., [1998 (6) TMI 547 - TAMIL NADU TAXATION SPECIAL TRIBUNAL] would squarely apply to the facts of the present case, where it was held that clause (a) of sub-section (1) of section 2 of the principal Act, namely Act 14 of1970 is ultra vires and should stand deleted. We make it clear that we are striking down only clause (a) of section 2(1). We also make it clear that under section 2 (2) and 2 (3) the intention of the legislature not to pass on the burden of additional sales tax to the consumers and the reference to prosecution, shall stand unaltered. The matter is remanded to the third respondent/Assessing Officer, who shall redo the assessment in accordance with law.
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