2017 (11) TMI 746

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..... The short question which falls for consideration in the instant case is, whether the petitioner can be treated as a first seller of tractors inside the State of Tamil Nadu. To decide this question, the following facts would be sufficient. 3. The petitioner is one of the authorised dealer of the manufacturer of Tractors M/s.Mahindra & Mahindra Limited, [ M&M Ltd. in short]. Its spares and accessories and a registered dealer on the file of the respondent, under the Provisions of the Tamil Nadu General Sales Tax Act, 1959 [ TNGST in short]. M/s.M & M Ltd., has got a branch in chennai. The petitioner purchased one tractor from the M&M Ltd. and an invoice was raised for the tractor and the petitioner paid totally a sum of Rs. 12,64,350/- [R....

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.... had not remitted the Sales Tax and they have paid only Entry Tax at 6% on the purchase of tractors. 7. Therefore, the respondent opined that collection of Entry Tax gives no right to the petitioner to state that they have paid tax under the TNGST Act at 4% and surcharge at 5% on the said 4%, in all, at 4.2%. This led to issuance of revision notice dated 10.07.2007 proposing to reject the monthly return and assess the turn over to the best of judgment. The assessment relates to the year 2005-2006. 8. The petitioner submitted their objections, reiterating their stand that they can never be treated as the first seller within the State and they being the dealer of the manufacturer had purchased the tractors on payment of TNGST which has ....

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....er should have conducted an enquiry, more so, when, M&M Ltd., being a registered dealer within the State of Tamil Nadu. There was no material available with the Assessing Officer to disbelieve the certificate issued by the M&M Ltd., dated 29.10.2007 wherein, they have clearly stated that they are the first seller of the tractor inside the State of Tamil Nadu. 12. Further, the respondent did not endeavour to make any enquiry as to whether the M & M Ltd., have paid Sales Tax at 4% and surcharge at 5% on tax (totally at 4.2%) by way of adjustment under Section 4 (1) of the Tamil Nadu Tax on Entry of Motor Vehicles into the Local Areas Act 1990. Without resorting to such procedure, penalizing the petitioner is incorrect and not sustainable. ....