TMI Blog2017 (8) TMI 1259X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner at in the State of Andhra Pradesh. Therefore, it is to be seen as to whether merely because a branch or liaison office established in Chennai, would run the transaction as a sale within the State - the answer would be negative. Thus, there is nothing on record to show that the joint venture with address at Chennai had sold the goods to the Joint venture with address at Andhra Pradesh. It may not be true that the Import and Export Code has been obtained in the name of the petitioner joint venture, giving the Chennai address, that by itself will not create a doubt in the transaction nor permit the transaction as a sale within the State of Tamil Nadu. For such interpretation given, it would be contrary to the section 5 (2) of the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cuting the project at Polavaram for construction of Polavaram dam for the State of Andhra Pradesh. 3. The petitioner is a registered dealer under the provisions of Andhra Pradesh Value Added Tax Act and they have obtained import and export code in the State of Tamil Nadu for import of necessary goods for Andhra Pradesh Government's project from the Chennai Sea and Airport. 4. The modus adopted by the petitioner is that their administrative office at Chennai, places purchase order on the foreign importer and its joint venture over seas partner for the goods and materials required for the Andhra Pradesh project. The foreign exporter raises invoices on the petitioner with the address at Chennai and the goods are consigned to the proj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tration under the Tamil Nadu Value Added Tax Act by the petitioner does not arise, as the goods imported are directly moving to the project site at Andhra Pradesh and there is no sale involved in the transaction. 8. The respondent passed an order dated 25.03.2017 demanding payment of tax at 14.5% and imposing two times compounding fees. This was challenged by filing a Writ petition in W.P.No.7626/2017, which was allowed by an order dated 27.03.2017, with a direction to the respondent therein to pass a fresh order after giving an opportunity of personal hearing. The petitioner filed additional objections and the respondent offered an opportunity of personal hearing, which according to them was an empty formality and passed the impugned or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, the goods were detained and there is evasion of tax to the State of Tamil Nadu. Therefore the respondent was fully justified in passing the impugned order. It is further submitted that the details of the certificate, Import Export Code registration was gathered from the IEC gate website. Therefore, it is seen that the registration was obtained by the petitioner's Head Office located at Chennai, Tamil Nadu State. 13. The stand taken by the petitioner is that the liaison office alone is at Chennai cannot be accepted as all accommodations were done at Chennai and they are not registered dealer under the Tamil nadu Value Added Tax Act and they are using the Chennai address for import purpose and obtained Import Export Code. The B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation by using the Chennai address. The Customs invoice has been raised in the address at Chennai. One of the joint venture partners namely M/s. L T Geostructure LLP is situated at Chennai and the Bankers are also in Chennai. Therefore, it is the case of the respondent that it is the Chennai establishment, which imports the goods and from the State of Tamil Nadu, it is transported to the State of Andhra Pradesh project site and therefore, it is a sale within the State. 17. On a perusal of the joint venture agreement dated 16.01.2015, it is seen that the Joint venture agreement has been entered into for design and execution of certain works for the Indirasagar Polavaram Project, Andhrapradesh. 18. Admittedly, the entire activities is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been obtained in the name of the petitioner joint venture, giving the Chennai address, that by itself will not create a doubt in the transaction nor permit the transaction as a sale within the State of Tamil Nadu. For such interpretation given, it would be contrary to the section 5 (2) of the Central Sales Tax Act which provides that a sale or purchase of goods shall be deemed to be take place in the course of import of the goods into the territory of India only if the sale or purchase either occasions such import or is effected by a transfer of documents or title to the goods before the goods have crossed the customs frontiers of India. 20. Undoubtedly the sale or purchase has occasioned such import and the goods are to go to the State ..... X X X X Extracts X X X X X X X X Extracts X X X X
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