AI Drafter 
TaxTMI 
TaxTMI 
2020 (5) TMI 608
X X X X Extracts X X X X
X X X X Extracts X X X X
....ly tax at 5% has been proposed and demanded but also compounding fees being twice the amount of the duty proposed has been imposed on the petitioner. The petitioner has been given an option to pay the aforesaid amount as compounding amount in lieu of prosecution. 2.The petitioner claims to have received purchase orders from M/s. Sri Vishnu Mills, Coimbatore , M/s. Varun Mills, Udumalpet and PSM Textiles, Coimbatore 3.It is the case of the petitioner that the petitioner purchased cotton from a supplier namely Balaji Cotton Trading Company, Maharashtra for being supplied to the above customers. The tax invoices was raised by the supplier directly in the name of the above three persons to whom the supply was to be affected directly. The tax....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ax. It is further submitted that only 2nd respondent is competent to levy and collect tax, if at all, tax was payable by the petitioner and was not paid by the petitioner. 9.It is specifically submitted that the 1st respondent being an Enforcement Wing Officer, has no power to take any action other than those mentioned in section 67 of the Tamil Nadu Value Added Tax Act, 2006. 10.It is further submitted that rule 15 of the Tamil Nadu Value Added Tax Rules, 2007 specifically excludes authority of the 1st respondent to deal with the provisions of section 71 and 72 of the said Act. 11.Per contra, the 1st respondent has filed 2 separate common counters dated April, 2014 and 2nd December, 2019. In both the counters it has been stated th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....efore submitted that it is for the petitioner to opt for the compounding of the offence by paying the composition fee or in the alternate face the prosecution proceedings as and when same is sanctioned by the competent authority. 14.I have considered the rival submissions made on behalf of the petitioner and the respondents by their respective counsels. The question of petitioner evading tax in respect of a transaction which has emanated from outside the State cannot be taxed on its entry within into the State of Tamil Nadu as in the present case. 15.If at all, the Check Post authorities at Maharashtra border had found that the goods were not charged to tax on such inter-state sale, they would have detained the goods and the lorry the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ued by carrier is the document of title to goods. 19.As per Section 2(4) of the Sales of Goods Act, 1930 transfer of goods can be by an "endorsement or delivery of documents of title". Thus, receipt is either transferred by a mere delivery or with an endorsement on the document. Even though goods can be transferred by mere delivery of documents without endorsement on such document, as a prudent practice, the transfer the documents generally accompanies a written endorsement on the documents. The seller sends such receipt to the buyer. The buyer takes delivery of goods from the carrier, on production of the receipt to the carrier. 20.As per Section 3(b) of the Central Sales Tax Act 1956,a sale or purchase can be effected by transfer of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (1) of Section 6 appears to provide for multi-point tax but this is subject to the other provisions of the Act. This qualification which is reflected in the other provisions of the Act restricts the levy to a single point subject to certain conditions, restrictions and circumstances. Sub-section (2) of Section 6 exempts from levy a subsequent inter-State sale to a registered dealer of goods [described in Section 8(3)] and also to the Government, provided conditions of the proviso to subsection (2) are fulfilled. However, a subsequent sale not falling within Section 6(2) will, however, attract tax because of Section 9(1), notwithstanding the fact that the first sale has been subjected to tax under Section 6(1) of the CST Act, 1956. Thus, Se....