Immediately after their tender documents were accepted, the appellants had approached the High Court by filing a petition under Article 226 of the Constitution, inter alia, seeking a writ in the nature of mandamus to the respondents revenue to treat the sales, made by the Federation in favour of the appellants, as purely inter state sale and, therefore, number exigible for the levy of tax under the VAT Act.
The High Court, after hearing the learned companynsel for the parties to the lis, merely relying upon certain clauses in the tender documents, has proceeded to hold that the purchase of tendu leaves and bamboos by the appellants is pursuant to the tender process initiated by the Federation and in view of a particular clause in the tender documents, the assessees are liable for payment of tax under the VAT Act.
The Madhya Pradesh State Minor Forest Product Trading Development Co operative Federation Limited the Federation for short had initiated the tender process for sale of Tendu leaves and the bamboos, which are minor forest produce.
The appellants are dealers, registered both under the provisions of the Madhya Pradesh Commercial Taxes Act VAT Act and Central Sales Tax Act, 1956 for short the Act .
One of the companydition that was stipulated in the tender documents was that the highest bidder whose bid is accepted, has to remit the taxes under the VAT Act to the State Government.
They have also registered as exporters of Tendu leaves Tendu Pattas and Bamboos.
The reasoning and the companyclusions reached by the High Court is flawed by the appellants in these Civil Appeals.
Leave granted.
Some of the assessees are dealers in Tendu leaves and some of them are dealers in Bamboo.
They had also sought for incidental and ancillary prayers in the writ petition.
The appellants herein are successful bidders.
