Madras High Court
M/S.Hyundai Motor India Limited vs M/S.Suhrit Services Private ... on 30 April, 2021
C.S.No.682 of 2015
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 30.04.2021
CORAM:
THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN
C.S.No.682 of 2015
M/s.Hyundai Motor India Limited,
rep. By its Authorized Signatory,
Mr.M.Sagadevan, Assistang General
Manager – Legal & Secretarial,
South Regional Office at Hyundai Motor Plaza,
NP 54, Developed Plot,
Thiru-Vi-Ka Industrial Estate,
Ekkaduthangal, Guindy, Chennai – 600 032. ...Plaintiff
Vs.
1.M/s.Suhrit Services Private Limited.,
S-19, Gulmohar Community Centre,
Yusuf Sarai, New Delhi – 110 046.
2.The Deputy Commissioner
(Commercial Taxes) – IV,
Large Tax Payer Unit,
Durga Tower, 5th Floor, Egmore,
Chennai – 600008. ...Defendants
Prayer: Plaint filed under Order IV Rule (1) of the Original Side rules r/w
Order VII Rule 1 and 2 of C.P.C., praying to direct the plaintiff the sum of
Rs.14,10,50,380/- (Rupees fourteen crores ten lakhs fifty thousand three
hundred and eightly only), to pay the plaintiff an interest @ 18 % of
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C.S.No.682 of 2015
subsequent interest on Rs.14,10,50,380/- (Rupees fourteen crores ten lakhs
fifty thousand three hundred and eightly only) from the date of plaint till the
date of realization of the amount, to pay the plaintiff the costs of the suit.
For Plaintiff : Mr.A.R.Karunakaran
For Defendants : No Appearance
JUDGMENT
This suit has been filed for recovery of a sum of Rs.14,10,50,380/-
being the excess tax amount paid by the plaintiff due to the failure of the
defendant in furnishing 'C' forms.
2.The plaintiff is a leading car manufacturer and the 1st defendant
was appointed as a dealer of the plaintiff. As per Section 8(1) of the
Central Sales Act, the rate of sales tax / VAT for the Cars and their spare
parts in the course of Inter-State Trade or Commerce in respect of sales
made to registered dealers of other states is 2%. The said concessional rate
of 2% is applicable to inter-state or commerce only if the selling dealer
furnishes particulars of sale to the prescribed authority in a particular
manner in a particular form, which is generally called as 'C' form within the
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C.S.No.682 of 2015
prescribed time. If the 'C' forms are not furnished within the prescribed
time, the sales made even to a registered dealer will also be deemed as a sale
made to an unregistered dealer or a Local Sales and the highest rate of tax
will be imposed according to the Local Sales Tax Act, wherein the tax rate
for the sale of cars / spare parts is 12.50% as against 2% under CST Act.
3.As per the memorandum of understanding dated 18.07.1996 and
22.01.2008 between the plaintiff and the Government of Tamil Nadu, the
plaintiff was given a concessional rate of tax at 1% instead of 2%. Pursuant
to the memorandum of understanding, the Government Orders have been
issued in G.OMs.225 dated 29.09.1998 and G.O.Ms.No.101 dated
23.04.2008.
4.As per the Central Sales Tax Act and Rules, the purchasing
dealer is obliged to obtain form 'C' from the local sales tax office and submit
the same to selling dealer to enable them to file the same to the local sales
tax authorities within the stipulated time. The plaintiff would claim that the
1st defendant, who was appointed as a dealer of the plaintiff under a letter of
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C.S.No.682 of 2015
intent dated 11.04.2003 failed to furnish 'C' forms as required under the Act
and therefore, the plaintiff was compelled to pay the suit claim as additional
sales tax. The differential sales tax comes to Rs.14,10,50,380/-.
5.According to the plaintiff, the liability for payment of excess
sales tax arose due to the failure on the part of the defendant to furnish 'C'
forms with the stipulated time and therefore, the 1st defendant is liable to
pay dues. On the strength of the above pleadings, the plaintiff had sought
for a decree for recovery of the said sum of Rs.14,10,50,380/- along with
interest at 18% per annum on the said sum from the date of plaint till date of
realization.
6.Despite service, the defendants have not chosen to enter
appearance to defend the suit. The plaintiff has let in evidence and one
Mr.M.Sagadevan, Deputy General Manager (Legal & Secretarial) and the
plaintiff has examined as P.W.1. He has filed his proof affidavit and has
also produced Exs.P1 to P19. The evidence on record clearly demonstrates
that the additional liability for a payment of sales tax arose solely on the
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C.S.No.682 of 2015
ground of the failure of the 1st defendant to produce 'C' forms within the
stipulated time. Therefore, the 1st defendant is liable to compensate the
plaintiff for the additional tax paid by the plaintiff.
7.Hence, the suit is decreed as prayed for with costs.
30.04.2021
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Internet:Yes
Index:No
Speaking
List of witness marked on the side of the plaintiff:
P.W.1 – M.Sagadevan
List of documents marked on the side of the plaintiff:
S.No Exihibits. Documents marked
No
1 Ex.P1 The original board resolution authorising Mr.M.Sagadevan.
2 Ex.P2 The photo copy of letter of intent issued by the plaintiff to the 1st
defendant.
3 Ex.P3 The photo copy of annual return in form No.1 for the financial year
2007 to 2008 of the petitioner with respect to interstate sales.
4 Ex.P4 The photo copy of annual return summary of form No.10 for the
financial year 2007-2008 along with list of invoice numbers and
value of sales made to the 1st defendant by the plaintiff for the
financial year 2007-2008.
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C.S.No.682 of 2015
S.No Exihibits. Documents marked
No
5 Ex.P5 The original annual return in form No.1 for the financial year 2009
to 2009 of the petitioner with respect to interstate sales.
6 Ex.P6 The photo copy of annual return summary of form No.10 for the
financial year 2008-2009 along with list of invoice numbers and
value of sales made to the 1st defendant by the plaintiff for the
financial year 2008-2009.
7 Ex.P7 The photo copy of the letter with reference number 723823 of
2007-08 sent by the Deputy Commissioner (CT), Enforcement
(North) with respect to CST Assessment for the financial year
2007-08.
8 Ex.P8 The original letter with reference number 723823 of 2008-09 sent
by the Deputy Commissioner (CT), Enforcement (North) with
respect to CST Assessment for the financial year 2008-09.
9 Ex.P9 The photo copy of the reply filed by the plaintiff for the letter with
reference Number 723823 of 2007-08.
10 Ex.P10 The original reply filed by the plaintiff for the letter with reference
number 723823 of 2008-09.
11 Ex.P11 The photo copy of the order passed by the Deputy Commissioner
(CT), Enforcement (North) for the financial year 2007-08 for a
demand of Rs.11,37,27,231/-.
12 Ex.P12 The original order passed by the Deputy Commissioner (CT),
Enforcement (North) for the financial year 2008-09 for a demand of
Rs.3,98,59,871/-/
13 Ex.P13 The photo copy of the plaintiff's reply to assessment order dated
15.03.2014, Assessment year 2007-08, informing the payment plan
under protest.
14 Ex.P14 The original plaintiff's reply to assessment order dated 15.03.2014,
Assessment year 2008-09, informing the payment plan under
protest.
15 Ex.P15 The photo copy of Notice sent by the Deputy Commissioner (CT)
-IV, Large tax payer unit for the demand of Rs.22,95,11,731/- for
the financial years 2006-07 to 2010-11.
16 Ex.P16 The photo copy of the plaintiff letter to the Deputy Commissioner
(CT) – IV, Large Tax payer unit for the payment of the demand
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C.S.No.682 of 2015
S.No Exihibits. Documents marked
No
under protest.
17 Ex.P17 The photo copy of the plaintiff letter to the Deputy Commissioner
(CT) – IV, Large tax payer unit for the payment of the demand
amount for the financial year 2007-08 under protest.
18 Ex.P18 The original plaintiff letter to the Deputy Commissioner (CT) IV,
Large tax payer unit for the payment of the demand amount for the
financial year 2008-09 under protest.
19 Ex.P19 The original legal notice issued to the defendants.
List of witness and documents filed on the side of the defendants:
Nil
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C.S.No.682 of 2015
R.SUBRAMANIAN, J.
KKN
C.S.No.682 of 2015
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C.S.No.682 of 2015
30.04.2021
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