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2016 (12) TMI 422 - HC - VAT and Sales TaxLevy of sale tax - Sale of Aircraft (Asset) - three joint owners of asset - as per the memorandum of agreement dated 15.03.2011 between the parties for exit of the petitioner from the joint venture agreed to transfer, assign and relinquish of their share of 33.33% aggregating to 66 2/3% in the joint venture to M/s.Madras Cements Ltd., with equal shares - whether it was sale transaction and is liable to be taxed or merely relinquishment/release of the share in the joint venture and therefore cannot be taxed? Held that: - The petitioner's case is that the transaction will not fall within the scope of the expression 'sale' as defined in Section 2(33) of the TNVAT Act. Thus, the factual averments set out by the petitioner has to be examined by the respondent. For doing so, it is necessary that the joint venture agreement dated 10.09.2003, memorandum of agreement dated 15.03.2011 and other related documents should be gone into to interpret the intentions of the parties. Having failed to do so would render the findings recorded by the respondent in the impugned order as not tenable. In the counter affidavit, the grounds raised by the petitioner having not been met rather the counter affidavit is the re-presentation of the impugned assessment order. The matter is remanded to the respondent for fresh consideration, who shall take note of the observations made this order and re-do the assessment under the said head in accordance with law - appeal allowed by way of remand.
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