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2010 (4) TMI 854 - MADRAS HIGH COURTLevy of Sales Tax (VAT) on Fabric - Classification of Hook and Loop Tape Fasteners called as Velcro Fastener - what is a Narrow Fabric and Hook and Loop Tape Fasteners - TNGST Act, 1959 - held that:- In the present case, it is not the stand of the State that they are taxing the specified commodity, i.e. Hook and Loop Tape Fasteners. It is the clarification issued by the Commissioner of Commercial Tax (COCT) bringing it under a different head in order to levy tax without relying upon the nature of goods and the entry under which it has been made under ADE Act, 1957. the Commissioner never gave any notice to the dealers and it is his own decision based on ipse dixit. Once it is not a commodity under 58.07, but once it is squarely covered under 58.06 subject to the Excise Act and ADE Act, 1957, this court is empowered to direct the respondents to statutorily grant exemption provided under Section 8 of the TNGST Act. If the State wants to levy even that particular commodity, it is well open to them to declare it as liable for tax, but cannot include it under some other wrong entry and then to levy tax only for the purpose of maximising the State’s Revenue. The clarification issued by the COCT does violence to the language found in the relevant entry. - Decided in favor of assessee.
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