9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1976 (9) TMI 154 - HC - VAT and Sales Tax
Issues:
1. Whether the transaction in question is liable to sales tax under the Tamil Nadu General Sales Tax Act, 1959. 2. Whether the sale in question was an outside State sale and not liable to tax under the Tamil Nadu Act. 3. Whether the respondent, who was not a dealer in paper, engaged in a solitary transaction of selling paper and paper boards, can be considered as a sale in the course of business. Analysis: The State of Tamil Nadu filed a tax revision petition challenging the Sales Tax Appellate Tribunal's decision regarding the assessment of sales tax on a transaction involving the sale of paper and paper boards by the respondent, who was primarily a dealer in sea-foods. The Tribunal held that since the respondent was not a dealer in paper and the transaction was isolated, it could not be considered a sale in the course of business. The State contested this decision, arguing that the transaction was connected to the respondent's business in sea-foods and, therefore, taxable under the Act. The definition of "business" under the Tamil Nadu Act includes any trade, commerce, or manufacture, as well as transactions related to such activities. The Court noted that the import of paper and paper boards by the respondent was directly linked to his sea-food business, as the import license was obtained based on sea-food exports. Therefore, the sale of imported paper and paper boards was deemed incidental to the sea-food business, contrary to the Tribunal's ruling. The Court cited relevant Supreme Court decisions to support this interpretation. The respondent's counsel argued that liability to tax under the Act required having a place of business in the State, which the late respondent did not have at the time of the transaction. However, the Court declined to address this argument as it was not raised before the Tribunal. The Court allowed the tax revision petition, setting aside the Tribunal's decision and reinstating the sales tax assessment on the turnover related to the sale of paper and paper boards. No costs were awarded in the matter.
|
