2013 (6) TMI 699 - HC - VAT and Sales Tax

Summary

Issues Involved:
The judgment involves issues related to differential tax for violation of form XVII declaration and levy of penalty under section 3(3) of the TNGST Act for the assessment year 1995-96.

Violation of Form XVII Declaration:
The petitioner, a selling dealer, collected concessional rate of tax based on declaration furnished by the purchasing dealer. The Tribunal sought to impose differential tax and penalty on the assessee for violation of form XVII.

Interpretation of TNGST Act:
The substantial questions of law raised included whether the Appellate Tribunal correctly interpreted the eligibility for concessional rate of tax under section 3(3) of the TNGST Act, and whether it overlooked the provisions of sections 23 and 45 penalizing only the purchasing dealer for misuse of form XVII.

Precedent and Decision:
Referring to a previous case, the court applied a decision holding that tax and penalty cannot be imposed on the seller for contravention of form XVII, but only on the purchasing dealer. Consequently, the court set aside the Tribunal's order, canceling the levy of penalty and differential tax for the petitioner.

This judgment clarifies the liability of a selling dealer in cases of form XVII violation and provides guidance on the interpretation of relevant provisions of the TNGST Act.