9911796707
TMI Blog2017 (9) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... oposing to cancel the petitioner's registration granted under the provisions of the TNGST Act. 2.The respondent issued a show cause notice dated 11.04.2006, stating that the petitioner has taken separate registration under the TNGST and CST from 16.07.2002 and that the Department has been informed that even though their company are governed by a common management, they had taken separate registration to avoid payment of Additional Sales Tax. Therefore, the respondent stated that he proposed to lift the corporate veil as per the decision of the Supreme Court and cancelled the petitioner's registration and clubbed their turnover with the other company viz., M/s. J Paramount Tea Marketing Private Limited. 3.The petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal sales tax. Therefore, the petitioner company was incorporated and a separate registration has been obtained from the Commercial Tax Department. This according to the respondent has been done solely for the purpose of avoiding payment of additional sales tax. Therefore, the respondent stated that he proposed to lift the corporate veil and ascertain as to what is the real intention of incorporating the petitioner company and hence, he proposed to cancel the registration. 7.The petitioner submitted their objections, but not convinced with the objections, the proposal was confirmed and the registration certificate issued to the petitioner was cancelled. 8.Before we go in to the correctness of the impugned order, what is important to note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales tax is of little avail and the formation of new company could have no impact on the levy and payment of additional sales tax, as this liability is on the seller/principal with effect from 01.01.2007, when the TNVAT Act, 2006 came into force. A sample bill raised by the grower/seller of Tea was produced before this Court, which shows that the seller is Tea Estates India Limited, the buyer is A.V.Thomas & Company Limited, and the agent is the petitioner herein. Thus, the impugned proceedings are totally flawed and therefore, liable to be set aside. For the above reasons, the writ petition is allowed and the impugned order is set aside. No costs. Consequently, the connected miscellaneous petition is closed. X X X X Extracts X X X X X X X X Extracts X X X X
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