2007 (8) TMI 687 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of tax laws regarding inter-State and branch transfer sales.
2. Consideration of form C and form F declarations for tax exemption.
3. Application of court decisions on similar cases to the present matter.

Analysis:
1. The petitioner, a registered dealer under the Tamil Nadu General Sales Tax Act, 1959 and the Central Sales Tax Act, 1956, engaged in inter-State and branch transfer sales. The respondent levied a higher tax rate on certain turnover despite form C declaration for inter-State sales and disallowed exemption claim for branch transfer under form F. The petitioner requested reconsideration based on relevant legal provisions, which the respondent did not act upon.

2. The court considered past decisions, including W.P. No. 2791 of 2005 and W. P. No. 2085 of 2006, along with the order of the Division Bench in W.A. No. 4 of 2003. Relying on these precedents and submissions from both parties, the court allowed the writ petition, setting aside the impugned order. The directions from the Division Bench's order in W.A. No. 4 of 2003 were to be followed, allowing the petitioner to provide necessary documentation for exemption consideration.

3. Paragraph 8 of the Division Bench's order specified the documentation required for satisfying the assessing officer for exemption purposes. The court directed the respondent to permit the petitioner to file applications for obtaining relevant documents from the export house or assessing officer to facilitate assessment proceedings effectively. The writ petition was allowed with these directions, and no costs were awarded, closing the connected M.P. No. 1 of 2007.