9911796707
TMI Blog2003 (4) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... STC 241. 2.. The Original Petition No. 198 of 2002 is filed by the petitioner-association to declare that the transaction of wattle extract of the petitioner-society being an incorporated association with its members is not exigible to levy of tax under the Tamil Nadu General Sales Tax Act, 1959 as they are exempted under section 5(2) of the Central Sales Tax Act, 1956. 3.. The petitioner-M/s. South India Tanners and Dealers Association, Ranipet, Vellore District is an incorporated society registered under the Tamil Nadu Societies Registration Act with Registration No. S6/1944 with effect from September 6, 1944. The petitioner, acting as an agent on behalf of its members who require wattle extract for the purpose of tanning the leather ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itution of India. 5.. Learned counsel for the petitioners-Thiru Muralikumaran has argued that the petitioner-association gather orders from its members and import wattle extract as agent to its members, apportion the goods among the members who require wattle extract for their tanning business. As the petitioner is not an association formed with any profit-motives, they are not exigible to tax under the Act. Learned counsel for the petitioner further relied on section 5(2) of the Central Sales Tax Act, 1956 to show that such transaction is not exigible to tax. 6.. Learned Senior Standing Counsel for the Revenue has contended that, as stated in the counter, levy of tax on the petitioner is in accordance with the provisions of the Tamil N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion whether or not in the course of business shall be deemed to be a sale. In short, the supply or distribution of goods by an incorporated or unincorporated association or body of persons to its members for a price will be deemed to be a 'sale' either under explanation (1) to section 2(n) of the Act or under section 2(n)(v) of the Act depending on the constitution of the association, society or club, as the case may be, and other incidents of the alleged transactions and the ratio of the decision in Young Men's Indian Association reported in [1970] 26 STC 241 (SC) no longer holds the field as contended by the petitioners. (c) The supply or distribution of goods by the All India Skins and Hides Tanners and Merchants Association to its mem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on." And finally dismissed the writ petition. This Special Tribunal, in para 43 of the order in the case stated supra, has held: "Thus, the present case of the petitioner-association is similar to the case decided by the Supreme Court in Deputy Commercial Tax Officer, Saidapet, Madras v. Enfield India Ltd. Co-operative Canteen Limited reported in [1968] 21 STC 317 (SC)." After going through the various grounds stated by the petitioners in their case, it was held that the decision reported in Joint Commercial Tax Officer v. Young Men's Indian Association [1970] 26 STC 241 no longer holds the field, as contended by the petitioners. Therefore, the prayer of the petitioner in Original Petition No. 197 of 2002 is covered by the decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act on behalf of its members and apportioned the same to its members in accordance with their requirements. In the absence of such proof, as rightly contended by the Revenue, the transaction will not fall under section 5(2) of the Central Sales Tax Act, 1956 and, therefore, the petitioner cannot take the said provision to its advantage. The decision of this Special Tribunal stated supra, as well as the order of the High Court in the writ petition filed against the order of this Special Tribunal stated supra, are against the prayer of the petitioners. For the foregoing reasons, these two original petitions are liable to be dismissed. In the result, O.P. Nos. 197 and 198 of 2002 are dismissed. And this Tribunal doth further order that thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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