Purchase Tax Not Leviable When Seller Fails to Pay Sales Tax: Madras HC

Light Roofings Ltd. Vs Tamil Nadu Sales Tax Appellate Tribunal (Madras High Court) Four writ petitions were filed by Light Roofings Ltd. before the Madras High Court challenging the common order of the Tamil Nadu Sales Tax Appellate Tribunal (STAT) dated 19 February 2008. The dispute concerned whether purchase tax could be levied under Section 7A of the Tamil Nadu General Sales Tax Act, 1959 (TNGST Act), when the seller or vendor had not remitted sales tax due on its transactions. Background The petitioner, a manufacturer and seller of asphalt roofing sheets, was registered under the TNGST Act...