2017 (10) TMI 945 - HC - VAT and Sales Tax

Validity of assessment order - TNGST Act - it was alleged that petitioners have effected transaction with the registration cancelled dealers - Held that - The Hon ble Supreme Court in State of Maharashtra Vs. Suresh Vs.Suresh Trading Company 1996 (2) TMI 451 - SUPREME COURT OF INDIA has held that the subsequent registration cancellation does not effect the right of the purchasing dealer for deduction . Apart from this reason, there appears to be no other reason on which the petitioner has challenged the order of assessment - matter is remanded back to the respondent to assess the petitioner to the correct rate of tax without going into the aspect that the petitioner has effected transaction with the registration cancelled dealers - petition allowed by way of remand.

Summary

The High Court of Madras allowed the writ petition of a registered dealer under Tamil Nadu General Sales Tax Act for the year 2002-03. The court remanded the matter back to the respondent for correct tax assessment, stating that transaction with registration-cancelled dealers does not affect the right of the purchasing dealer for deduction.