https://www.taxtmi.com/caselaws?id=163310 Section 7A(1)(c) of the Tamil Nadu General Sales Tax Act was upheld as a charging and remedial provision intended to prevent tax leakage and evasion. The court rejected the challenge to State legislative competence, holding that the levy is on purchase tax and not a consignment tax, and therefore falls within State power. It also construed the phrase "in circumstances in which no tax is payable" to cover cases of conditional exemption where the sale does not suffer tax. The levy was held not to violate Articles 14, 301, or 304(b), and the writ petitions were dismissed. en-us Wed, 14 Nov 2007 00:00:00 +0530 Sun, 21 Dec 2014 11:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=163310 Section 7A(1)(c) of the Tamil Nadu General Sales Tax Act was upheld as a charging and remedial provision intended to prevent tax leakage and evasion. The court rejected the challenge to State legislative competence, holding that the levy is on purchase tax and not a consignment tax, and therefore falls within State power. It also construed the phrase "in circumstances in which no tax is payable" to cover cases of conditional exemption where the sale does not suffer tax. The levy was held not to violate Articles 14, 301, or 304(b), and the writ petitions were dismissed. Case-Laws VAT and Sales Tax Wed, 14 Nov 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=163310