TaxTMI 
TaxTMI 
2007 (12) TMI 432
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....ing writ of certiorarified mandamus for quashing the order dated January 27, 2000 in Proceeding No. Proc. L. 1049/99 and further directing the second respondent, the District Forest Officer to release the sandalwood purchased by the present respondent in the auction dated December 18, 1998 without demanding demurrage and penal interest and without insisting on payment of sales tax. The present appellant No. 2 had issued notification dated October 27, 1998 notifying the auction of various classes of sandalwood. The present respondent who is an exporter of sandalwood products, participated in such auction held on December 18, 1998 and was the successful highest bidder for a total quantity of 7 MTs for a sum of Rs. 34,27,600. A sum of Rs. 1 l....
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....bank guarantee for the balance amount. Such order of the Division Bench was communicated by the respondent to the second appellant on August 19, 1999. Thereafter, on August 31, 1999, a communication was received from the second appellant wherein the present respondent was called upon to pay the entire sale amount, demurrage charges, penal interest besides sales tax amount. On September 8, 1999, the writ petition was dismissed by the learned single judge by observing that the department should consider all the materials placed before it and to consider the question of exemption under section 5(3) of the Central Sales Tax Act. After several correspondence, particularly by the respondent indicating the various orders as well as referring to th....
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....ut claiming any demurrage or penalty as the petitioner is not responsible for the delay and they have been agitating their rights with regard to the payment of sales tax. (iv) The petitioner is directed to establish before the concerned authorities that they are entitled to the benefits under section 5(3) of the Central Sales Tax Act, 1956 with respect to the sandalwood purchased by them. (v) If the petitioner is not able to establish within a period of five months as to their entitlement of the benefits as stated in clause (iv) above, the respondents are directed to enforce the bank guarantee and realise the amount. (vi) If the petitioner is able to establish their case within the said period of five months regarding the benefits....
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....he goods forthwith. Since there was further delay, contempt proceedings was initiated and the materials were delivered only thereafter on July 21, 2006. Learned single judge has relied upon the earlier Division Bench decision of this court in W. A. Nos. 94 to 96 of 2000(2) in coming to the conclusion that there was no justification for the department to insist on payment of sales tax in view of the provisions contained in section 5(3) of the Central Sales Tax Act, 1956. Learned single judge, however, has given a direction to the present respondent to furnish bank guarantee, obviously with a view to ensure that in case it is ultimately found that section 5(3) is not applicable, liability relating to payment of sales tax can be recovered. Le....