9911796707
TMI Blog2008 (3) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... ENON , J. ORDER:- RAJENDRA MENON J. Challenging the orders passed by the assessing authority, Commercial Tax Department, Government of Madhya Pradesh vide order dated April 29, 2005 (annexure P4) for the period April 1, 2002 to March 31, 2003, and the order (annexure P7) passed by the revisional authority rejecting the revision filed by the petitioner against the order of assessment, the petitioner has filed this petition. The petitioner is a company owned by the Government of Tamil Nadu having its head office at Chennai and branch at Arera Colony, Bhopal. The petitioner is engaged in the business of manufacturing and sale of medicines. It is stated that at times orders are directly made to the head office of the company at Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax, as it is included in entry No. 30 of Schedule I to section 15 of the Commercial Tax Act. It was emphasised that as the transfer made by these four forms pertains to transfer of vegetable seeds, no tax is liable to paid on the same. As far as one form No. 5915/26 was concerned, it was pointed out that this does not relate to the petitioner-company, but to Finolex Cable Limited and, therefore, no tax could be levied on this form. As far as the other seven forms are concerned, it was pointed out that in all these cases sales were made directly by the head office of the company from Chennai to the Central Railway Authorities at Jabalpur and Bhopal and as the sale transaction was held in the State of Tamil Nadu, it was liable to be taxed und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax deducted. Inter alia contending that all the sales were effected from Bhopal and are liable to be taxed, the respondents have refuted the aforesaid contentions. It is the case of the respondents that all the transactions covered under the twelve forms indicate that the sales were made from Bhopal and, therefore, they are liable to be taxed under the statutory provision and accordingly action taken. Shri Alok Pathak argued that as assessment is done properly and as the sales are effected within the State, commercial tax has been properly levied and the orders passed by the revisional authority and the assessing authority refusing to accept the explanation given with regard to the transactions indicated in the twelve form 75s are prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vy tax on inter-State sales and sales made outside the State. All purchases and sales made outside the State of Madhya Pradesh and done in the course of inter-State trade or commerce are exempt from payment of tax under this provision. It is in the light of the aforesaid statutory provisions that liability of the petitioner to pay tax on the twelve transactions involved in this petition, is required to be determined. If the particulars of form 75, as indicated in annexure P2, are reviewed, it would be seen that forms at serial Nos. 1, 3, 4 and 6 pertain to transaction for sale of vegetable seeds. All these transactions are exempted from payment of tax by virtue of entry No. 30 of Schedule I of section 15, that being so, the transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adhya Pradesh. A perusal of the impugned order passed by the assessing authority and the revisional authority indicates that the authorities have construed the sale to be effected in the State of Madhya Pradesh, merely on the ground that form 75 is issued from the branch office at Bhopal to the office at Chennai and, therefore, it is construed that the sale is from Bhopal. This finding recorded and inference drawn by the authorities is wholly misconceived and perverse and without any basis. Merely because form 75 is issued from the branch office at Bhopal that, by itself, does not cast a liability on the petitioner to pay tax, further finding has to be recorded by the respondents to the effect that the sales transaction have taken place ..... X X X X Extracts X X X X X X X X Extracts X X X X
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