Sonpal submits that there is no merit in the same. While challenging the assessment orders, it would be open for the Petitioners to raise the contentions of applicability of the CST Act and equally in the alternative and without prejudice that assuming those contentions are turned down and the BST Act is applicable and attracted, still the particular goods are exempt from tax. In the light of this request made we direct that for a period of three weeks no coercive measures be taken to recover the amounts. The Directors of the vendors from whom the petitioner claimed to have purchased goods belong to the low income group. The United States Supreme Court decided this case in favour of the United States and against State of California , summarizing its conclusion as follows:

The assumption on the part of the Petitioner is that the sale has taken place outside the State of Maharashtra and in territorial waters which are international in character. The above two decisions are relied upon for the sole purpose of submitting that territorial waters cannot be considered as being part of any province of a nation. More so, when these remedies are efficacious. The impugned order therefore must be quashed and set aside on this ground alone. This sale is complete and irreversible.

I accordingly propose to restrict the exemption to Rs. These barges are similar to petrol pumps where petrol is sold to the regular customers. According to the petitioner on the assumption that certain vendors of the petitioner viz.

case study mvat

High speed diesel is not only used in filling as fuel but having multiple industrial, commercial and domestic uses, such as in house generators of electricity, in boilers, humidifiers, etc. Leave a Reply Cancel reply You must be logged in to post a comment.

– Restaurant,etc. Case Study-2

If the Petitioner is a person who for the purposes of its business buys or sells goods in the State, then, it cannot escape the tax. Leighton and other entities similarly placed. It is similar to shop when consumer shudy for self consumption in vehicles.


Under the VAT regime, selection of a case for audit is stated to be an exception and based on risk analysis and random Sridharan, in that regard, places reliance upon Judgment of the Hon’ble Supreme Court in the case of Popatlal Shah vs. Sridharan submits that the present case vase be a case of future goods or unascertained goods and in that regard, reliance is placed upon the definition of the term ‘future goods’ appearing in section 2 clause 6 of the Sale of Goods Stuvy The grievance is that the orders of provisional attachment were passed without furnishing an A splitting up or picking and choosing one part of the transaction will not be of any assistance.

Sridharan submits that there is undue haste in passing this assessment order and principles of natural justice have been totally srudy. This demonstrates that even individuals with no business interests may benefit from VAT advice.

A reasonable opportunity has to be given to the Petitioner and parties like it to make submissions and srudy relevant documents and materials. Little history of enactment of the Central Sales Tax Actparticularly section 4 requires to be noted. Sridharan, however, has not disputed the fact that for the purposes of determining the applicability of the two provisions viz.

case study mvat

Sridharan, learned Senior Counsel appearing for the Petitioner has divided his submissions into three stuvy. The barges proceed to the place where the ship is stationed and delivers the required quantity of high speed diesel.

Thus, no prejudice is being caused by relegating the Petitioners to these remedies. The Court, vide order dated 21st April, has directed the parties to maintain status quo.

Industries Ltd vs The Joint Commissioner Of Sales on 30 April,

Sridharan needs to be considered in the light of some of the documents on record. Sridharan in his oral submissions as also in the written submissions and additional written submissions emphasised that even if by virtue of section 4 of the CST Act, a sale is treated as having taken place inside the State, the State cannot tax it under the State’s Sales Tax Actif the same transaction satisfies section 3 of the CST Act, Whereas a Contract between Leighton and Raj Shipping is being prepared to formalise the final details, the broad basis of our Notice of Award to you are as follows:.


The oil company prepared the shipping bills and invoices and the same are raised on the Petitioners. When a formal agreement is executed, the terms and conditions thereof will govern retrospectively any Work carried out by Raj Shipping pursuant to this NOA.

This is so clarified in the commentary ‘Law relating to waters’ by Coulson and Forbes, chapter titled ‘Of the Sea and Rights Therein’ vide the 6th Edition of the book. Sridharan relied upon treaties such as ‘Atiyah’s Sale of Goods’, 12th Edition, ‘Benjamin on Sale of Goods’, 2nd Edition for the purpose of explaining to us the meaning of the terms ‘unascertained goods’.

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In many cases, the Petitioner enters into a formal agreement with their customers for the purchase of HSD. The casse as to whether cse petitioner is disabled from a claim of set off under Section 48 5 is a matter which would be determined during the course of This inclusion is not even held stuxy be ultra vires or challenged by the Union. The barges have pumps fitted on it with a flow meter in order to pump out the HSD to the vessel.

The same order was served on the petitioner on 30th April The Notification cannot be extended to mean applicable to all retail sales irrespective of the channel through which it is sold such as supply to ships through barges. Here also there is an explanation.

case study mvat