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2021 (3) TMI 796 - HC - VAT and Sales TaxAssessment of turnover - hank yarn obligation - HELD THAT:- Tribunal was right in holding that the hank yarn obligation represented the consideration received for the hank yarn manufactured and transferred to other mills' accounts to discharge the statutory obligation imposed for other mills by the Statutory Authority and in that process, they received the hank yarn obligation. Hence, the Tribunal was right in holding that the same represented the consideration received for the hank yarn manufactured and transferred to other mills' accounts - the factual details are rightly re-appreciated by the Tribunal and that there are no reasons to interfere with the same - Petition dismissed. Assessment made on the disputed turnover of ₹ 7,86,81,405/- - cotton purchases effected by the petitioner from the Maharashtra Federation in the Maharashtra State - HELD THAT:- The said issue is covered in favour of the petitioner in the light of the Larger Bench decision of the Special Tribunal in the case of JAMBAI KNM. TEXTILES (P.) LIMITED AND OTHERS VERSUS STATE OF TAMIL NADU AND OTHERS [1999 (11) TMI 840 - TAMIL NADU TAXATION SPECIAL TRIBUNAL] where it was held that the transaction cannot be considered as local sale, but only as inter state purchase and the same was not liable to tax under the TNGST Act 1959 at the point of last purchase in the State. The finding rendered by the Tribunal with regard to hank yarn obligation is confirmed and the finding rendered by the Tribunal with regard to the cotton purchases effected by the petitioner is set aside - appeal allowed in part.
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