SRI MOOKAMBIGAI TRADERS Vs. ASSISTANT COMMISSIONER[CT][FAC]

JUDGEMENT

(1.) Heard M/s.R.Hemalatha, learned counsel appearing for the petitioner and Mr.K.Venkatesh, learned Government Advocate, appearing for the respondent. With the consent on either side, these writ petitions are taken up for disposal.

(2.) The petitioners are trading in Turmeric and Turmeric powder at Salem and they are assessee on the file of the respondent in these writ petitions. The petitioners have sought for issuance of writ of certiorari to quash the notice issued by the respondent dated 09.03.2017. In the impugned notice, the respondent has stated that under Section 12 of the Tamil Nadu Value Added Tax Act, 2006 (in short "TNVAT Act"), every dealer, who in the course of this business purchases from a registered dealer or from any other person any goods, in the circumstances in which no tax is payable by the registered dealer on the price of such goods under the Act, and either despatches or carries them to a place outside the State except as a direct result of sale of purchase in the course of interstate trade or commerce or in the course of except out of the territory of India, shall pay purchase tax on the turnover relating to the purchase at the rates specified in the Schedules to the TNVAT Act.

(3.) Further, it has been stated that under the Commodity code 718 of the TNVAT Act no tax leviable, on sale of Turmeric and Turmeric Powder by a dealer whose turnover in respect of sale does not exceed Rs.300 Crores in a year. Under Commodity Code 2052 of the TNVAT Act, on the sale of goods not specified in any of the Schedules tax is leviable at the rate of 5%. On a scrutiny of Form WW filed by the petitioners for the relevant years, it is stated that the petitioners had effected purchases of Turmeric from Agriculturists and from other dealers without payment of tax. A portion of the goods were transferred under consignment sale and stock transfer interstate and the petitioners had not paid purchase tax as per Section 12 in respect of the goods purchase from local dealers and sent on stock transfer. Therefore, the respondent proposed to levy purchase tax for such transaction and directed the petitioners to file their objections within a period of 7 days. The petitioners are before this Court, challenging the impugned show cause notices.