Case Law Details
Maharaja Gas Agency Vs State of Tripura (Tripura High Court)
Facts- The petitioner is carrying the business of distribution of Liquid Petroleum Gas (LPG) as well as transportation of LPG and LPG cylinders. On participation in a tender, invited by the Indian Oil Corporation Limited (IOCL), he was successful in the bid for grant of licences for transportation of LPG and LPG cylinders for various destinations. The IOCL had issued three separate work orders for transportation of LPG and LPG cylinders for different places.
But, during the process of execution of those work orders, the Superintendent of State Tax initiated an assessment proceeding u/s. 31 of TVAT Act against the petitioner and passed an Order of Assessment levying with a liability to pay tax on the petitioner for the A.Y. 2015-2016 & 2016-2017 and in furtherance issued two demand notices, for payment of the aforesaid amounts as value added tax, interest and penalty.
The petitioner by filing the instant writ petition has prayed for setting aside/quashing the aforesaid Order of Assessment dated 31.03.2021 and also the two demand notices dated 31.03.2021.
Conclusion- This court is of the considered opinion that the owner of the cylinder is IOCL. The transport/supply does not fall within the ambit of transfer of goods as defined in “sale”. Further, when transaction has taken place in Assam, the respondent authorities cannot have any jurisdiction over Interstate.
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