The original petitioners in the writ proceedings claim to be large exporters of 'Sandalwood products' and participated in the auction conducted by the Department of Forest, Government of Tamil Nadu, and were the successful bidders. It is the case of the original petitioners that as per the conditions of auction, they had to pay the entire bid amount together with interest to the District Forest Officer, within 50 days from the date of confirmation of auction, and thereafter, within 75 days, the delivery of sandalwood was to be made to the auction purchaser. The petitioners claims that since the auction purchase was pursuant to an export order, there was no liability to pay sales tax and thus sought tax exemption from the concerned department. There was however insistence of the DFO to deposit the total amount within the stipulated time failing which the EMD would be forfeited. This consequence followed as the original petitioners did not deposit the amount. The original petitioners thus approached the court for quashing the forfeiture order.

2. The petitions were resisted on behalf of the Forest Department alleging that the original petitioners had paid only the EMD of 1/5th