2012 (9) TMI 900 - HC - VAT and Sales Tax

Summary

Issues involved: Clarifications on eligibility of tax u/s Tamil Nadu Value Added Tax Act, 2006 for purchase or sale of fuel at a bonded warehouse.

Summary:
The petitioner sought clarifications from the respondent regarding the tax eligibility under the Tamil Nadu Value Added Tax Act, 2006, for the purchase and sale of fuel at its bonded warehouse. The petitioner intended to buy fuel from foreign suppliers, store it at the custom bonded warehouse, and then sell it to foreign going vessels for consumption. The respondent issued an order stating that bunker fuel-furnace oil is taxable at five per cent under entry 67A(n) of Part B of the First Schedule to the Act. The petitioner challenged this order, claiming that it was passed without a hearing and lacked reasoning. The court set aside the respondent's order and directed them to reconsider the issues raised by the petitioner, provide a detailed explanation for their conclusions, and pass a new order within four weeks, after granting a personal hearing to the petitioner. The writ petition was disposed of with these directions, and no costs were awarded.