Full News
Ques. of sale being inter-state or intra-state to be settled U/S 9(i) of VAT Act
Ques. of sale being inter-state or intra-state to be settled U/S 9(i) of VAT Act
Registered dealers & expoters of M.P filed an writ petition before HC seeking exemption from taxes to be levied on them as per the highest bidders for the sale of tendu leaves. Since, sales were claimed to be inter-state not intra-state, levy of taxes is not eligible. SC ordered AO to check the nature of sales U/S 9(i) of VAT Act for eligiblity of taxes. Till then, amount submitted by dealers before HC will not be refunded.-900211
1. The appellants are dealers, registered both under the provisions of the Madhya Pradesh Commercial Taxes Act/VAT Act. 2. They have also registered as exporters of Tendu leaves (Tendu Pattas) and Bamboos. 3. Appellants accpeted the tender process initiated by Co-operative Federation Limited for the Tendu leaves and the bamboos, which are minor forest produce. 4. A condition stipulated from the tender document as per which the highest bidder whose bid is accepted, has to remit the taxes under the VAT Act to the State Government. 5. Fortunatly, Appellants were the highest bidders so they have to remit the taxes to government. 6. But, they filed a writ petition before High court seeking exemption from taxes, claiming the states to be inter-state. 7. HC rejected appellants plea as per the clause in tender process. 8. Appellants initiated appeal before honorable Supreme Court for the decision in their favour. 9. HELD- SC ordered Assessing officer to check whether that the sales were actually inter-state or intra-state under section 9(i) of VAT Act. 10. SC also ordered HC not to refund the amounts submitted by appellants during their proceedings.
Case Reference - M/S Zunaid Enterprises & Ors vs State Of M.P.& Ors.
