2017 (9) TMI 592

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..... tax, as this liability is on the seller/principal with effect from 01.01.2007, when the TNVAT Act, 2006 came into force - A sample bill raised by the grower/seller of Tea was produced before this Court, which shows that the seller is Tea Estates India Limited, the buyer is A.V.Thomas & Company Limited, and the agent is the petitioner herein - impugned proceedings are totally flawed and therefore, liable to be set aside - petition allowed - decided in favor of petitioner.
T. S. Sivagnanam, J. For the Petitioner : Mr. R. L. Ramani, Senior Counsel for Mr.B.Raveendran For the Respondent : Mr.S.Kanmani Annamalai ORDER The petitioner is a company incorporated under the Indian Companies Act and registered with the respondent under the provi .....

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..... Mr.B.Raveendran, learned counsel for the petitioner and Mr.S.Kanmani Annamalai, learned Additional Government Pleader appearing for the respondent. 5.The petitioner's parent company was incorporated in Calcutta during 1987 and they are carrying on business as agents for Tea. The petitioner's company was incorporated in the year 2002 and they have obtained separate registration under the provisions of TNGST Act and CST Act. The petitioner has been given separate PAN number by the Income Tax Department and regularly returns have been filed. 6.The petitioner is also required to obtain license from the Tea Board of India to carry on the profession of being agent for Tea, thereby, the Commission, which they are entitled to, was also f .....

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..... ttempted by the respondent by issuing a show cause notice dated 11.04.2006 is a futile attempt. 9.Be that as it may, the reason assigned in the impugned order for cancelling the petitioner's registration is incorrect. Even assuming the corporate veil is lifted, what it would reflect is a separate company, which has been incorporated under the Indian Companies Act and they have got themselves registered by the Income Tax Department separately and are paying income tax. That apart, the Commercial Taxes Department recognized the petitioner as a separate entity and on being satisfied granted registration certificate under the TNGST Act and CST Act. Thus, the petitioner being a separate legal entity is entitled to carry on business as per t .....

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