2007 (8) TMI 687 - HC - VAT and Sales Tax

Court grants writ petition to registered dealer for tax exemption on inter-State sales

The court allowed the writ petition in favor of the petitioner, a registered dealer under tax laws, involved in inter-State and branch transfer sales. The ... Exemption on branch transfer and consignment sales - treatment of inter State sales under form C - reopening assessment under section 55 of the Tamil Nadu General Sales Tax Act read with section 9(2) of the Central Sales Tax Act - production of export documents and summoning of foreign order to establish actual exportExemption on branch transfer and consignment sales - treatment of inter State sales under form C - production of export documents and summoning of foreign order to establish actual export - Impugned assessment order set aside and matter remitted for reconsideration with directions to permit production or procurement of export documentation and to consider claims supported by forms C and F on merits. - HELD THAT: - The Court accepted the petitioner's submission that forms C and F had been filed and that the petitioner sought exemption for inter State sales and branch transfers subject to production of supporting export/shipment documents. The respondent's counsel conceded that the claims made by the petitioner in the letter dated March 23, 2007, would be considered on merits and in accordance with law. In view of earlier decisions of this Court and the respondent's concession, the impugned order was set aside and the respondent was directed to follow the directions contained in paragraph 8 of the Division Bench order dated April 5, 2004, in W.A. No. 4 of 2003, which permits the petitioner to satisfy the assessing officer by producing invoice number and date of export, name of ship and port, date of departure and copy of the bill of lading in support of actual export and shipment. The Court further directed that the respondent should permit the petitioner to file an application, if necessary, to summon documents from the export house or from the assessing officer having jurisdiction over the export house by obtaining a copy of the foreign order, to enable proper disposal of the assessment proceedings. The respondent is required to consider the forms and the produced or procured documents on merits for purposes of exemption.Writ petition allowed; impugned order set aside and assessment remitted for fresh consideration in accordance with the directions in paragraph 8 of the Division Bench order dated April 5, 2004, including permitting production or summoning of export documents and consideration of forms C and F on merits.Final Conclusion: The writ petition is allowed; the impugned order is set aside and the matter is remitted to the assessing authority to consider the petitioner's claims on merits after permitting production or procurement of export/shipment documents in accordance with the Division Bench directions; no costs. Issues:1. Interpretation of tax laws regarding inter-State and branch transfer sales.2. Consideration of form C and form F declarations for tax exemption.3. Application of court decisions on similar cases to the present matter.Analysis:1. The petitioner, a registered dealer under the Tamil Nadu General Sales Tax Act, 1959 and the Central Sales Tax Act, 1956, engaged in inter-State and branch transfer sales. The respondent levied a higher tax rate on certain turnover despite form C declaration for inter-State sales and disallowed exemption claim for branch transfer under form F. The petitioner requested reconsideration based on relevant legal provisions, which the respondent did not act upon.2. The court considered past decisions, including W.P. No. 2791 of 2005 and W. P. No. 2085 of 2006, along with the order of the Division Bench in W.A. No. 4 of 2003. Relying on these precedents and submissions from both parties, the court allowed the writ petition, setting aside the impugned order. The directions from the Division Bench's order in W.A. No. 4 of 2003 were to be followed, allowing the petitioner to provide necessary documentation for exemption consideration.3. Paragraph 8 of the Division Bench's order specified the documentation required for satisfying the assessing officer for exemption purposes. The court directed the respondent to permit the petitioner to file applications for obtaining relevant documents from the export house or assessing officer to facilitate assessment proceedings effectively. The writ petition was allowed with these directions, and no costs were awarded, closing the connected M.P. No. 1 of 2007.