9911796707
TMI Blog2012 (11) TMI 1054X X X X Extracts X X X X X X X X Extracts X X X X ..... quantity of 99.000 MT of sandalwood upon payment of the balance sale consideration and other charges if any. 2. In W.P. No. 569 of 2011, the petitioner seeks a writ of certiorarified mandamus to call for the records of the sale confirmation having reference IC No. 9999/2010 S(1), dated December 30, 2010 passed by the first respondent, to quash the same insofar as it directs payment of 12.5 per cent sales tax on the sale value and to consequently direct the first respondent to collect sales tax at two per cent at Rs. 7,05,580 from the petitioner on the total sale value of Rs. 3,52,79,000 for 7.000 MTS of sandalwood purchased by the petitioner in the auction conducted by the first respondent held on December 22, 2010 in the course of inter-State trade within the meaning of section 3(a) of the Central Sales Tax Act and deliver the said quantity of 7.000 MTS of sandalwood upon payment of the balance sale consideration and other charges if any. 3. In W.P. No. 570 of 2011, the petitioner seeks a writ of certiorarified mandamus to call for the records of the sale confirmation having reference IC No. 9999/2010 S(1), dated December 30, 2010, passed by the first respondent, to quash the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conducted by the District Forest Officer, Salem. Sealed tenders will be accepted in the office of the District Forest Office, Salem up to 11 A.M. on December 22, 2010 and the received tenders will be opened immediately thereafter before the tenderers who are present, by the District Forest Officer, Salem at Government sandalwood depot, Ilasthampatty, Salem, Tamil Nadu. The auction sale will be held at 12 noon on December 22, 2010 by the District Forest Officer, Salem at the same venue. . . . 21. The successful tender-cum-auction sale bidder shall pay the following amount: (a) The E.M.D. of Rs. 1,00,000 (rupees one lakh only) referred in condition No. 8(a) above will not be included for the purpose of calculating the sum required to be deposited as per clause 8(b) above. (b) Each successful tenderer/bidder shall pay the remaining 80 per cent amount (i.e., the entire balance sale amount) by way of demand draft drawn on, any nationalized bank in favour of the District Forest Officer, Salem Division, Salem, within 45 days from the date of receipt of confirmation order or before taking delivery, whichever is earlier. Bank guarantee will not be accepted in lieu of cash or demand dr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dder as per provisions of the VAT Act, 2005 and Rules made thereunder and other concerned provisions of law, along with the payment of final instalment of the balance tender sale amount. (ii) The tenderer/bidder shall get orders from the Assistant Commissioner (Commercial Taxes), Salem Town North and pay the value added tax, as ordered by the Assistant Commissioner (Commercial Taxes), Salem Town North, Salem. The tenderer/bidder shall produce exemption certificate obtained from the Assistant Commissioner (Commercial Taxes), Salem Town North, Salem, if the tenderer/bidder claims any exemption of payment of taxes. In case of non-production of such exemption letter, tenderer/bidder must pay full amount. The tenderer/bidder shall resolve any dispute/litigation with regard to VAT or any tax, only with the Commercial Tax Department and the Forest Department will not be a party to it. (b) Income-tax: Income-tax shall be paid by the purchaser, as per the provisions of the Income-tax Act, 1961 and Rules made thereunder along with the balance 80 per cent of the tender amount. (i) The tenderer/bidder should mention the permanent account number (PAN) issued by the Income-tax Department. If ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication. In any event, on going through the various provisions contained in the tender-cum-auction sale notification, which the petitioners in each one of the case agreed to abide by unconditionally, it is clear that the entire transaction resulting in sale in this case has taken place in the State of Tamil Nadu. 9. The relevant portion of section 3 of the Tamil Nadu Value Added Tax Act, 2006 (for brevity, "the TNVAT Act, 2006"), which provides for levy of taxes on sales of goods, reads as follows: "3. Levy of taxes on sales of goods.-(1)(a) Every dealer, other than a casual trader or agent of a non-resident dealer, whose total turnover for a year is not less than rupees five lakhs and every casual trader or agent of a non-resident dealer, whatever be his total turnover, for a year, shall pay tax under this Act." 10. The term "dealer" defined under section 2(15) of the TNVAT Act, 2006 means any person who carries on the business of buying, selling, supplying or distributing goods, directly or otherwise and it includes a casual trader. Section 2(12) of the TNVAT Act, 2006 defines "casual trader" as under: "2. (12) 'casual trader' means a person who has, whether as princ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to abide by the terms and conditions unconditionally, there cannot be any manner of doubt that the case squarely falls within the mischief of section 3 of the TNVAT Act, 2006. Therefore, the demand for payment of value added tax under the TNVAT Act, 2006 is justified. There is no basis to justify the claim as inter-State sale. The said plea is specious and not as per law. The petitioners have not made out a case for the relief sought for both in law and on facts. 13. A similar issue was decided by a Division Bench of this court in Karnataka Soaps and Detergents Ltd. v. District Forest Officer, Sathyamangalam [2005] 140 STC 112 (Mad), wherein it was held as under (pages 122 and 123 in 140 STC): "11. It may be noted that the auction sale of sandalwood in the State of Tamil Nadu was done by the State of Tamil Nadu. The State Government would only be interested in getting the highest price for the sandalwood, and it would hardly be concerned with the question whether the sandalwood after the auction sale is consumed within the State of Tamil Nadu or goes to some other State. Hence, it cannot be said even by implication that the State of Tamil Nadu had entered into any covenant with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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