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2021 (2) TMI 976 - HC - VAT and Sales TaxLevy of tax - Inter-state sale - applicability of benefit of section 6(2)(b) of the Central Sales Tax Act - Section 3(a) of CST Act - HELD THAT:- In the assessee's own case, an identical issue was considered by the Hon'ble Division Bench of this Court in the decision reported in TRACTORS & FARM EQUIPMENTS LTD. VERSUS STATE OF TAMIL NADU AND ANOTHER [1998 (6) TMI 559 - MADRAS HIGH COURT] which went in favour of the petitioner - assessee holding that the sale was an inter-state sale under Section 3(a) of the Act. Following the said decision, the show cause notices issued to the assessee in respect of other years were also set aside. When the said judgment was placed before the Tribunal, the Tribunal, in paragraph 18 of the impugned order, noted the decision and held that the said decision would squarely applicable to the assessee's case for the assessment year under consideration also. However, the Tribunal committed an error in not correctly noting the ultimate relief for the assessment year 1980-81. In fact, in the last sentence of the said judgment, it was held that the order of the Tribunal levying tax on second inter-state sale effected by the assessee could not be sustained and was therefore set aside. Had the Tribunal noted this last sentence, the relief that should have been granted to the assessee was to allow the appeal and not to dismiss the same. This would be sufficient to interfere with the impugned order. The Department was bound by the decision of the Hon'ble Division Bench of this Court in the assessee's own case namely TRACTORS & FARM EQUIPMENTS LTD. VERSUS STATE OF TAMIL NADU AND ANOTHER [1998 (6) TMI 559 - MADRAS HIGH COURT]. Hence, we have no hesitation to hold that the impugned order passed by the Tribunal is incorrect. The second respondent is directed to grant exemption to the petitioner – assessee under Section 6(2)(b) of the Central Sales Tax Act on the turnover for the assessment year under consideration - Petition allowed - decided in favor of petitioner.
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