K.FAISAL BABU Vs. SALES TAX OFFICER

JUDGEMENT

(1.) EXT .P1 and P1(a) are the applications made by the petitioner for registration as dealer under the KVAT and CST Acts for trading in live chicken. For obtaining the registration, as security thereof, the petitioner produced National Saving Certificates for Rs.15,000.00, security bond for Rs.2 lakhs and also furnished additional security of Rs.2 lakhs by marking lien on fixed deposit receipt. However, the first respondent issued Ext.P3 notice proposing to reject the applications and notice to the extent, it is relevant, reads thus:

(2.) ON receipt of the notice, the petitioner filed Ext.P4 reply, where it was stated thus:

(3.) READING of Ext.P3 shows that there are two reasons stated for the proposal to reject the application. First one is that the petitioner has only one rented room, which is not enough to stock the commodity dealt with. The other reason stated is that since live chicken is not taxable in Tamil Nadu and Karnataka, the petitioner will not get 'C' Form on such sales. Answering these statements in Ext.P3, in his reply Ext.P4, the petitioner stated that he does not intend to store the live chicken and will only divert/transship the consignments on its arrival. Insofar as the allegation that his proposal was to sell the chicken to he dealers in Tamil Nadu and Karnataka is concerned, in Ext.P4, the petitioner stated that his intention is to sell chicken to dealers in Mahi and that live chicken is a taxable item in that State.