Allowed

Tvl.Muthu Poultry Agencies v. The Assistant Commissioner St

Madras HC20 Dec 2021WP/26431/2021

Case brief

AI extract

What is this about?

In a writ petition, the High Court of Madras directed the Assistant Commissioner (ST) to issue Form-C to a poultry manufacturer who procured capital goods at concessional tax rates. The court ordered the officer to verify if goods were for poultry or mining purposes within 30 days.

What did the court decide?

Directing the respondent to verify the purpose of goods and issue Form-C within 30 days.

Tvl.Muthu Poultry Agencies Vs The Assistant Commissioner… — GST and Indirect Tax | Madras HC (2021)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 20.12.2021

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CORAM

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THE HONOURABLE MR.JUSTICE C.SARAVANAN

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W.P.No.26431 of 2021 & W.M.P.Nos.27900 & 27898 of 2021

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(Through Video Conferencing)

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Tvl.Muthu Poultry Agencies, Represented by its Partner, G. Thiyagarajan, No.05/36, Ettigoundan Pudur, Avalnaickenpatty Post, Namakkal- 637 019.

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...Petitioner

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The Assistant Commissioner (ST), Namakkal (Rural) Assessment Circle, Namakkal. ...Respondent

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Prayer: Writ Petition filed under Article 226 of the Constitution of India to issue a Writ of Certiorarified Mandamus, calling for the records on the files of the respondent in Na.Ka.No.554/2021/A1 dated 20.10.2021 and quash the same as being without jurisdiction and authority of law and contrary to the principles of natural justice.

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ORDER

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The petitioner has filed this writ petition under Article 226 of the Constitution of India to issue a Writ of Certiorarified Mandamus, calling for the records on the files of the respondent in Na.Ka.No.554/2021/A1 dated 20.10.2021 by stating that the impugned order dated 20.10.2021 was without jurisdiction and for a further direction to the respondent to issue Form-C.

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It is the specific case of the petitioner that the petitioner is engaged in manufacturing of poultry products and had procured capital goods from a supplier from outside the State at a concessional rate of tax, the petitioner requested https://hcservices.ecourts.gov.in/hcservices/ the respondent to issue appropriate Form-C.

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The respondent however rejected the request of the petitioner vide impugned order dated 20.10.2021 bearing reference No. Na.Ka.No.554/2021/A1. The reasons given in the impugned order reads as under:

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ghu;it 1 kw;Wk; 3-y; fhZk; fojk; K:yk; jh';fs; “rp gotk;” nfhup tpz;zg;gk; rku;g;gpj;Js;sPu;fs;/ mt;tpz;zg;gj;jpy; jh';fs; (2025) Machinery & Spares bfhs;Kjy; bra;jikf;F Online rp gotk; nfhupa[s;sPu;fs;/“ ” Mdhy;. ,t;tYtyfj;jpy; Online- y; gjpntw;wk; bra;a[k; trjp ,y;yhj fhuzj;jhy; ,J bjhlu;ghf gjpt[fs; nkw;bfhs;Sk; bghUl;L ,j;Jiw cjtp ikaj;jpw;f;F kpd;d";ry; mDg;gg;gl;lJ/ cjtp ikaj;jpypUe;J ,t;tzpfu; 705-vd;w Commodity-y; kl;Lnk gjpt[ bgw;Ws;shu;/ vdnt. ,t;tzpfu; 705-vd;w Commodity-y; kl;Lk; eK:dh jhf;fy; bra;a ,aYk; vd kpd;d";ry; K:yk; gjpy; bgwg;gl;lJ vd;gij j';fSf;F bjuptpj;Jf;bfhs;fpnwd;/ nkYk;. j';fs; kpd;d"y; K:yk; mDg;gpa Form-B apid guprPyid bra;jjpYk; ,t;tYtyfj;jpy; cs;s j';fsJ gjpt[r;rhd;W nfhg;gpy; cs;s Form-Bapid guprPyid bra;jjpYk; 2025-Machinery & Spares f;fhd gjpt [fs; ,y;iy vd;gija[k; j';fSf;F bjuptpj;Jf;bfhs;fpnwd/;

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The learned counsel for the petitioner submits that the petitioner having purchased the capital goods at a concessional rate of tax is duty bound to furnish the Form-C to the supplier for the supply of the capital goods from outside the State. It is submitted that the reasons stated in the above order is incorrect.

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He further submits that the petitioner is engaged in poultry manufacturing of poultry products. The purchase of capital goods was made at concessional rate may for the aforesaid purpose. There is no wrong intention to misuse the Form-c. It is submitted that the respondent can visit the business place of the petitioner and verify whether the capital goods was purchased by the petitioner for indeed used for manufacturing of poultry products.

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Opposing the prayer, learned Special Government Pleader for the respondent submits that the petitioner's registration in Form-B under the Central Sales Tax Act, 1956 is confined for purchase of machinery, machinery spares for mining classifiable under commodity Heading 2025 and therefore, the respondent cannot issue Form-C for purchase of capital goods for mining purpose, as the petitioner is engaged in poultry business.

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Heard learned counsel for the petitioner and the learned Special Government Pleader for the respondent.

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https://hcservices.ecourts.gov.in/hcservices/

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No doubt, the petitioner's certificate for registration obtained from the Commercial Tax Department for the purpose of Assessment under CST Act, indicates that the petitioner can procure goods for mining purpose. However, the facts of this Case is that the petitioner is engaged in the poultry business and not in mining business. Majority of the items mentioned in the said registration pertain to goods connected with the poultry business including re-sale of gunny bags, egg trays. Though the petitioner has also indicated machinery spares under commodity Heading 2025 for use in Mining Business, question to be determined is whether the goods were indeed purchased for mining purpose or for poultry purpose.

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Considering the above, I am inclined to allow this writ petition by directing the respondent to issue appropriate Form-C to the petitioner, after duly verifying aid causing an inspection at the place of the business of the petitioner as to whether the goods procured from outside the State of Tamil Nadu from the supplier were indeed required for the poultry business or not. Subject to such satisfaction, the respondent may issue Form-C to the petitioner. This exercise shall be carried out by the respondent within a period of 30 days from the date of receipt of copy of this order.

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Accordingly, this writ petition stands allowed with the above observations. No costs. Consequently, connected writ miscellaneous petitions are closed.

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Sd/-

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Assistant Registrar (CO) //True Copy//

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Sub Assistant Registrar

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nst/jas

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The Assistant Commissioner (ST), Namakkal (Rural) Assessment Circle, Namakkal.

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+1cc to Mr.R.Senniappan, Advocate SR. No.68749

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+1cc to Special Government Pleader (Taxes) SR. No.68812

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W.P.No.26431 of 2021

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& W.M.P.Nos.27900 & 27898 of 2021

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SS (CO) https://hcservices.ecourts.gov.in/hcservices/ PR (21/01/2022)

Tvl.Muthu Poultry Agencies v. The Assistant Commissioner St

Case brief

What is this about?

What did the court decide?

Tvl.Muthu Poultry Agencies v. The Assistant Commissioner St

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

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