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TMI Blog2017 (9) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... of the respondent in these writ petitions. The petitioners have sought for issuance of writ of certiorari to quash the notice issued by the respondent dated 09.03.2017. In the impugned notice, the respondent has stated that under Section 12 of the Tamil Nadu Value Added Tax Act, 2006 (in short TNVAT Act ), every dealer, who in the course of this business purchases from a registered dealer or from any other person any goods, in the circumstances in which no tax is payable by the registered dealer on the price of such goods under the Act, and either despatches or carries them to a place outside the State except as a direct result of sale of purchase in the course of interstate trade or commerce or in the course of except out of the territory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d therefore, the proposal to levy of purchase tax on the purchase turnover under Section 12 of the TNVAT Act is illegal. 5. The learned counsel further submitted that a Division Bench of this Court, in the case of Hotel Shri Kannan Vs. State of Tamil Nadu reported in [2007] 8 VST 97(Mad) held that Section 7(A) should be a charging section as well as a remedial one, in as much as it levies a tax on the purchases of goods by a dealer from a registered dealer or from any other person who may be either unregistered dealer or other persons such as agriculturists and other producers who are not liable to pay tax under the TNVAT Act on the sales or purchases. 6. Further, in the said decision, the levy of purchase tax on Turmeric and Turmeric Pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the respondent vide communication dated 31.08.2017 submitted that the petitioners are registered dealers under the TNVAT Act and doing business in Turmeric and Turmeric Powder, etc. They have purchased Turmeric from unregistered dealers and some portion of the goods were transferred under consignment sale or stock transfer outside the state for Rs. 2,68,41,798/- during the year 2012-2013. As the purchases have not suffered tax and were disposed of other than by way of sale outside the state, the above purchases are liable to tax under section 12(1)(c) of the TNVAT Act and hence, a notice is issued in Tin No.33062621241/2012-2013 dated 09.03.2017 and TIN No.33062621726/13-14 dated 15.05.2017 for which the dealers have filed their objecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atch of Turmeric purchased from Agriculturists outside the state for consignment sale will attract purchase tax under section 12 of the Act. (VAT/40823/07(VCC No.1269)dated:19.09.2007) 12. It is further submitted that if the goods are sent outside the state other than by way of sale, purchase tax is leviable at the appropriate rate for the goods purchased from agriculturist or unregistered dealer, which were sent outside the state for sales on consignment basis (88STC P.98 SC). 13. It is further submitted that the goods so exempted not being taxable goods cannot be brought to charge under section 12 of the TNVAT Act. But, in this case, the goods are taxable one and exemption is allowed with condition and therefore, the proposed levy of ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hin thirty days from the date of receipt of copy of this order and the same shall be forwarded by the respective assessing authority to the Commissioner of Commercia Taxes; and 3.to direct the Government to authorise the Commissioner of Commercial Taxes to decide: (a) as to the applicability of the Circular D.Dis.Acts Cell II/75893/99, dated December 24, 1999, as amended by the clarification No.91/2000, D.Dis.Acts Cell II/52300/2000, dated October 4, 2000, to the case of the dealers, depending upon the facts of each case; and (b) to pass such other further orders, as the case may be, in accordance with law. 15. It may be true that the above direction was issued in a challenge to the power of the respondent therein to levy purchase tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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