2014 (3) TMI 780 - HC - VAT and Sales Tax

Exemption of tax for inter-state sale No proof of inter-state sale Whether second writ petition for the same relief maintainable - Held that - The petitioner is not entitled for the exemption from the Sales Tax pursuant to the exemption certificate issued by the CTO on the earlier occasion for Overseas Sale - No document has been produced by the assessee to comply with the statutory formalities that the turnover has been fulfilled the ingredients of interstate sale - Since Assessee is liable to pay the sales tax since he has sold sandalwoods within the State - Even though on the earliest occasion, the 1st respondent have released the amount to the petitioner, it will not mean that the 2nd respondent cannot retain the present impugned Demand Draft since already the writ petition filed by the petitioner for the same relief for the same turnover, it has been dismissed for the same reason - similar writ petition has been filed in W.P.No.579 of 2004 for the same relief and the same was dismissed by this Court by order dated 21.1.2004 The Assessee also closed down his business - Since the petitioner has not filed any writ appeal as against the said order, it has become final - Thus, second writ Petition for the same relief is not maintainable in law - Writ Petition dismissed Decided against assessee.

Summary

Issues:
1. Dispute over the applicable sales tax rate for sandalwood purchased in auction.
2. Issuance and modification of bank guarantees for payment of sales tax.
3. Discrepancies in the release of bank guarantees by the respondents.
4. Exemption for overseas sale and interstate sale tax implications.
5. Legal contentions regarding the retention of bank guarantees.
6. Dismissal of previous writ petition and maintainability of the current writ petition.

Analysis:
1. The petitioner participated in a sandalwood auction and contested the sales tax rate, claiming liability for 4% tax due to interstate movement. The court directed payment of 4% tax and bank guarantees for the remaining amount.

2. The petitioner paid 4% tax, issued bank guarantees, and faced issues with their release due to administrative errors. The court intervened to rectify mistakes in the release of bank guarantees.

3. Disputes arose over the retention of bank guarantees by the respondents, leading to the petitioner seeking legal recourse through writ petitions for the return of the bank guarantee amounts.

4. The case involved exemptions for overseas and interstate sales, with contentions on the completion of sale requirements and the petitioner's entitlement to tax exemptions based on official certificates.

5. Legal arguments revolved around the retention of bank guarantees, previous court orders, and the petitioner's compliance with statutory requirements for interstate sales, influencing the decision on the writ petition's maintainability.

6. The court dismissed the writ petition citing prior dismissal of a similar petition, lack of appeal, and failure to provide adequate documentation supporting interstate sales, leading to the rejection of the petitioner's claims and the closure of the case without costs.