RUCHI SOYA INDUSTRIES LIMITED Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) W. P. NOS. NOS. 37327 and 37328 of 2003 are preferred against the order of the Tamil Nadu Taxation Special tribunal rejecting the original petitions preferred by the petitioner against the assessment order dated 29. 5. 2003 for the assessment year 1999-2000 and 2000-2001.

(2.) THE petitioner has preferred W. P. No. 29700 of 2004 before this Court for a Writ of Declaration that the power of the State to levy purchase tax under Section 7-A on goods purchased, the sale of which enjoyed exemption under the notification issued under Section 17 and sent on consignment basis to outside the State otherwise by way of sale under Section 7-A (1) (c) of the Tamil Nadu General sales Tax Act, 1959 is unconstitutional and beyond the legislative competence of the State under Entry 54, List -II of the Seventh Schedule to the Constitution of India and ultra vires Entry 92-B of List -I of the Seventh Schedule to the Constitution and void as repugnant to Article 14, violative of Article 301 and not saved by Article 304 (b) of the Constitution of India. Originally the petitioner preferred O. P. No. 695 of 2003 before the Tamil Nadu Taxation special Tribunal, challenging the vires of Section 7-A (1) (c)of the Tamil Nadu General Sales Tax Act 1959. It is stated that since the Tribunal was not functioning in its quorum to hear the case, a doubt was raised during the course of hearing before the Tribunal as regards the jurisdiction of the single member to proceed with the case.

(3.) THE petitioner herein is a company engaged in the business of import and domestic purchase and sales of various types of edible oil, i. e, RBD Palmolein, Soyabean oil and Sunflower Oil. The purchases were effected from various registered dealers inside the State of Tamil Nadu. From time to time, the oils so purchased were stock transferred by the petitioners to their branches outside the state of Tamil Nadu. The petitioner states that these transactions were rightly entered into the books of accounts maintained by them in the course of business. The original assessments for the assessment years 1998-99, 1999-00 and 2000-01 were completed both under the Tamil Nadu General sales Tax Act, 1959 as well as under the Central Sales Tax act, 1956. It is stated that the petitioner was served with a notice to revise the assessment on 24. 3. 2003 with reference to the liability under Section 7-A of the Tamil nadu General Sales Tax Act, 1959. The objection of the petitioner was overruled ultimately, to result in the passing of the assessment order. The petitioner challenged the same before the Tamil Nadu Taxation Special Tribunal.