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IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dr.JUSTICE ANITA SUMANTH, Mr.JUSTICE C.KUMARAPPAN, JJ
Techni Tools, Represented by Partner Mr.Harbinder Singh – Appellant
Versus
Sales Tax Appellate Tribunal [A.B] – Respondent
COMMON ORDER
(Judgment of the Court was delivered by C.KUMARAPPAN, J.)
The instant writ petitions are arising against the order of the Tamil Nadu Sales Tax Appellate Tribunal in STA.Nos.777, 779 & 782 of 2000 dated 11.03.2008.
2. The brief facts which are necessary for disposal of the instant writ petitions are as follows:-
(a). The Assessee M/s.Techni Tools is a manufacturer of M.S.Rounds, M.S.Bars etc. During the material assessment years 1992-93, 1993-94 and 1994-95, they claimed exemption towards inter-State consignment transfers of the above materials under Section 6-A of the Central Sales Tax Act, 1956. However, the Commercial Tax Officer vide Assessment Orders dated 29.11.1996 and 06.05.1996 respectively has disallowed the exemption and also imposed a penalty under Section 12(3)(b)(v) of the Tamil Nadu General Sales Tax Act.
(b). Aggrieved with the said order, the assessee preferred an Appeal before the Appellate Assistant Commissioner under Section 31 of the Tamil Nadu General Sales Tax Act. The Appellate Assistant Commissioner vide order dated 28.09.1999 reversed the assessment order and granted exemption as prayed by the Assessee.
(c). Not satisfied with the above order, the Re
The court held that the reasons for denying exemption under Section 6-A of the Central Sales Tax Act were contrary to established legal principles regarding inter-State sales and agency.
The court clarifies the conditions under which sales are taxable and addresses inter-State sales exemptions under the General Sales Tax Act.
Exemptions under sales tax laws depend on the nature of the transactions; delivery outside the State must be a direct result of the sale.
The burden of proof under the TNGST Act rests with the assessee, and failure to establish claims leads to tax liability and penalties.
The assessing authority must substantiate disallowance claims with evidence beyond mere assumptions, particularly regarding transactions post-inspection.
The phrase 'within the State' in Section 2(r) of the Tamil Nadu General Sales Tax Act is unconstitutional as it discriminates against agricultural products grown outside Tamil Nadu, violating Article....
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