TMI Blog2018 (12) TMI 1743X X X X Extracts X X X X X X X X Extracts X X X X ..... exempts the transactions, namely, sale of the goods referred to therein if purchased from any dealer whose turn over in respect of the goods does not exceed ₹ 5,00/- crores in a year. For the said provision of section 12 to apply, a sale or purchase in respect of the goods must be liable to tax. The goods on hand can obviously be not brought within the scope of Entry 41 of Part B of First Schedule only because of the specific entry, namely, Entry 68 in Part B of the IV Schedule. They are not levied with tax in the turn over of the seller is below ₹ 5,00/- crores. Therefore, the phrase in circumstances in which no tax is payable will get attracted - It can be seen from Section 12(1) of the Act and it can be seen from the counter affidavit filed by the respondents that there is a larger object behind incorporation of Section 12 of the Act. It was introduced to ensure that the State will not lose its revenue at least at one stage. The petitioners after purchasing the goods in question have transferred the same to their branches/agents, who are in other States by effecting consignment sales. The stand of the respondent authority will have to be sustained - Petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grams including broken, splits, flour, husk and dust thereof and parched and fried grams made from them by any dealer whose turnover in respect of the goods in each item does not exceed rupees five hundred crores in a year. (1) Gram or gulab gram. (2) Tur or arhar (3)Moong or green gram (4) Masur or lentil (5)Urad or black gram (6)Moth (7)Lekh or Khesari (8)Mochai (9)Karamani (10)Thatta Payaru (11)Kollu (12)Avarai 768 4.The pointed contention of the petitioners counsel is that even though the goods on hand can be brought within the purview of Entry No.41 Part B of the First Schedule, applying the general principle of law that the special will prevail over the general, the goods in question will have to be necessarily treated as exempted goods. In this regard, the learned counsel appearing for the petitioner placed reliance on the decision of the Hon'ble Himachal Pradesh High Court reported in (2007) 7 VST 609 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the manufacture of other goods for sale or otherwise or (b) despatches all such goods in any manner other than by way of sale in the State or (c) despatches them to a place outside the State except as a direct result of sale or purchase in the course of inter-State trade or commerce. The scheme of the Act involves three inter-related but distinct concepts which may conveniently be described as taxable person , taxable goods and taxable event . All the three must be satisfied before a person can be saddled with liability under the Act. The learned counsel contented that none of these ingredients are present in the case on hand. 7.The respondents have filed a detailed counter affidavit and the learned Additional Government Pleader appearing for the respondents reiterated the contentions set out therein and prayed for dismissal of these writ petitions. 8.TNVAT Act, 2006 has a preamble. It is An Act to consolidate and amend the law relating to the levy of tax on the sale or purchase of goods in the State of tamil Nadu . While Section 3 of the Act provides for levy of taxes on sales of goods, Section 12 of the Act pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been dealing in exempted goods. 10.The sheet anchor of the arguments of the learned counsel for the petitioners is that since the petitioners fall under Entry 68 of the Part B of the IV Schedule, the issue does not admit of ambiguity or arguments. The learned counsel appearing for the petitioners drew my attention to Section 15 of the Act. It states that sale of goods specified in the Fourth Schedule and the goods exempted by Notification by the Government by any dealer shall be exempted from tax. The petitioners' contention would be that nothing more is required to establish the exempted nature of the goods in question. 11.The IV Schedule is in two parts. Part A and B. Part A has been omitted by Tamil Nadu Act No.30 of 2011. There is only Part B now. There are as many as 81 Entries in part B. If one runs through the various entries, it can be seen that Entry 1(i) to Entry 64(A) refer only to goods. In other words, goods alone are described and mentioned and nothing else. But, Entries 65, 66, 67, 68 refer to sale transactions. Likewise, Entries 69 to 81 refer to goods. We are concerned with Entry 68. Entry 68 has already been extracted. Entry 68, does no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lves in an exempted transaction is not sufficient to absolve them of liability. It can be seen from Section 12(1) of the Act and it can be seen from the counter affidavit filed by the respondents that there is a larger object behind incorporation of Section 12 of the Act. It was introduced to ensure that the State will not lose its revenue at least at one stage. The petitioners after purchasing the goods in question have transferred the same to their branches/agents, who are in other States by effecting consignment sales. 14.In this view of the matter, the stand of the respondent authority will have to be sustained. These writ petitions are therefore dismissed. No costs. Consequently, connected miscellaneous petitions are closed. In all these writ petitions, this Court had only pronounced on the legal issue. The petitioners' liberty to offer their replies as well as filing of appeal is left open. The liberty is given because there can be questions regarding quantum. The petitioners are given three weeks time to offer their replies against the impugned notices from the date of receipt of a copy of this order. In the case of WP(MD)Nos.23284 to 23290 of 2015 if the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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