2001 (8) TMI 1364 - HC - VAT and Sales Tax

Summary

Issues:
- Nature of sale of sandalwood (inter-State or local) in auction sales
- Maintainability of the writ petitions
- Challenge to the proceedings of the Special Commissioner and Commissioner of Commercial Taxes
- Interpretation of the sale of sandalwood as inter-State or local
- Application of legal precedents in determining the nature of auction sales
- Burden of proof in claiming movement of goods between states
- Clarifications by the Special Commissioner and Commissioner of Commercial Taxes
- Attempt to reopen concluded issues in writ petitions
- Abuse of the court process

Analysis:

1. Nature of Sale of Sandalwood: The petitioners sought a writ of mandamus to determine whether the sale of sandalwood in auction sales was inter-State or local. The judge found that similar issues had been raised and decided in earlier writ petitions, indicating an abuse of the court process by the petitioners. The judge highlighted that the petitioners were aware of the outcomes of previous writ petitions, making the current petitions unjustifiable.

2. Maintainability of Writ Petitions: The judge ruled that the writ petitions were not maintainable as the petitioners had not challenged the proceedings of the Special Commissioner and Commissioner of Commercial Taxes. Without challenging these proceedings, the petitioners could not seek a direction regarding the reliance on the said proceedings. This lack of challenge affected the viability of the writ petitions.

3. Interpretation of Sale of Sandalwood: On the merits, the judge had previously decided against the petitioner's claim that the purchase of sandalwood in the auction was inter-State and not local. Referring to legal precedents, the judge emphasized a case where the sale of timber in a public auction was deemed a local sale, emphasizing the completion of the sales transaction within the state.

4. Burden of Proof and Legal Precedents: Citing a Supreme Court case, the judge reiterated that the burden of proving the movement of goods between states lay with the party claiming such movement. The judge also applied legal precedents to the case at hand, emphasizing the need for a link between the sale and the movement of goods to classify a sale as inter-State.

5. Clarifications by Tax Authorities: The judge referenced clarifications by the Special Commissioner and Commissioner of Commercial Taxes, affirming that the sale by the Forest Department was a local first sale and that successful bidders from outside the state were also engaged in local sales as per the Tamil Nadu General Sales Tax Act.

6. Abuse of Court Process: The judge criticized the petitioners for attempting to reopen concluded issues through repeated writ petitions, especially after an inordinate delay. The judge noted a pattern of raising the same contentions annually to secure interim orders, avoiding tax payments, which was deemed an abuse of the court process.

In conclusion, the judge found the writ petitions to be not maintainable and dismissed them, emphasizing the abuse of the court process by the petitioners.