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November 2012

M/S Sarad Bricks Industries And Others V. State of Tripura and Others,[2011] 42 VST 485 (Gauhati)

By C. B. Thakar, Advocate
G. G. Goyal, Janak Vaghani, Chartered Accountants
Reading Time 1 mins
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VAT- Refusal to Issue Declaration – For Default in Payment of Tax by Another Firm in Which One Partner of The Dealer Firm is a Partner – Not Valid – Tripura Value Added Tax Act, 2004.

Facts
The dealer, a partnership firm was entitled to get prescribed forms upon payment of tax under the Tripura Value Added Tax Act, 2004. The Department refused to issue forms to the dealer despite payment of tax by it, on the ground that the partnership firm in which one of the partner of the dealer firm is a partner, has not discharged its tax liability under the act. The dealer filed a writ petition before the Gauhati High Court against the refusal to issue forms by the department.

Held
The dealer firm is an entity independent of the fact as to who its partner is. When no tax is payable by the dealer, the issue of forms can not be refused in terms of memorandum, for default in payment of tax by the other firm, in which one partner of the dealer firm is also a partner. Accordingly, the High Court directed the department to issue forms to the dealer.

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