TaxTMI 
TaxTMI 
TaxTMI 
2022 (9) TMI 1053
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.... For the Petitioner : Mrs.S.Radha Gopalan (in all WPs) For the Respondents : Mr.V.Moorthy (for R1 in all WPs) for Mr.J.Kumaran, Additional Government Pleader, Mr.N.Prasad COMMON ORDER A common order is passed in these three Writ Petitions seeing as the petitioner in W.P.No.13267 of 2019 is an association comprising dealers of Indian Oil, styled as Puducherry Indian Oil Dealers' Welfare Association and the other two Writ Petitions have been filed by individual dealers whose cause of action is one and the same. 2.The petitioners seek Writs of Mandamus forbearing 2nd and 3rd respondents i.e. the Chief Divisional Retail Sales Manager and the Chief General manager (Retail Sales) of Indian Oil Corporation Limited (in short 'IOCL'....
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....ealers and in terms of Section 8(2) of the CST Act, remits 2% as against 30% otherwise payable in terms of the Schedule to the Tamil Nadu Value Added Tax Act (in short 'TNVAT Act'). The benefit of concessional rate is conditional upon the dealer furnishing a statutory form furnished by the dealer, in Form-C. 7.In the eventuality that a dealer is held to be a defaulter under the provisions of the Act, albeit in respect of its own tax/penalty dues, Section 43 might be invoked and one of the possible measures for coercive recovery might be withholding of 'C' Declaration Forms. As a consequence, IOCL would be constrained to bear the differential of 28% of tax. 8. IOCL and other similarly placed companies are not a stranger to ....
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....the Supreme Court pointed out in paragraph 33 of the report that the Sales Tax Department is neither privy to, nor is it concerned with the interse rights and obligations of the seller and purchaser. There are also cases where the purchasers do not forward the statutory forms to the sellers, for extraneous reasons. The only legal recourse available in such cases to the selling dealers, is to file civil suits for recovery of the tax that they are made to pay on account of the default committed by their purchasers. The Supreme Court pointed out that there is no reason to deviate from this position. The argument based on equity was also rejected by the Supreme Court in paragraph 35 on the ground that equity plays a miniscule role in fiscal mat....
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.... pay the amount thereof to the Dealer. The deposit shall be held by the Corporation subject to such further terms and conditions as may be stipulated by the Corporation from time to time. The Dealer agrees that the Corporation shall be under no obligation to the Dealer with regard to nor shall the Dealer be entitled to any benefit arising out of the manner of use or disposal of the funds received as deposits from the Dealer." 12.It is more than abundantly clear that IOCL is, by providing for this requirement, protecting itself against any unanticipated liability, including shortfall of C Forms in cases of defaulting dealers, to be made by a dealer either in cash or by way of security, whenever called upon by the Corporation, pending subsis....