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2014 (5) TMI 370 - MADRAS HIGH COURTExemption of Tax – Grant of Exemption - Export of cotton Yarn - Notice of pre-assessment - Under the Tamil Nadu General Sales Tax Act - Held that:- There is no justifiable ground found even to maintain this Tax Case for the simple reason that admittedly the assessee is a unit enjoying IFST Waiver Scheme, in which event, the tax effect on the sales effected by the assessee is nil - All that the Assessing Authority had to see in the matter of considering the claim on the benefit of IFST Waiver is to find out as to whether the assessee had complied with the terms of the waiver scheme - Given the fact that the Assessing Authority had passed an order of assessment recognising the claim of the assessee for IFST waiver of the liability on the first sales of cotton yarn, it matters very little as to whether the notification would have any application to the case of the assessee herein – Thus, the tax case filed before this Court is a superfluous one and merits to be dismissed on the simple issue itself. Exemption Notification - Compliance with the terms of scheme – under the Tamil Nadu General Sales Tax Act - Held that:- In contra distinction to the proviso to Section 9, the notification which preceded the introduction of the proviso to Section 9 left the subject of export open, in the sense, there is no insistence of export of what was purchased by the registered exporter - Thus in the absence of any specific restriction seen in the notification, one has to read it as an open ended clause on export – There is no hesitation in accepting the case of the assessee that the notification leaves no restriction as to the subject of export to condition the grant of exemption – In the face of the registration granted to the ultimate exporter as a registered exporter and the conditions of the notification thus satisfied, the Tribunal held that the assessee had rightly claimed the benefit of exemption. Reference to Sec 5(3) of CST Act with proviso Sec 9 of TNGST Act – Held that:- As far as the reference to Section 5(3) of the Central Sales Tax Act, which is same as proviso to Section 9 of TNGST Act is concerned, the Tribunal pointed out that the exemption granted herein is of a general nature with reference to the goods which are exported as such and are no different from what was purchased - Thus, in contrast to Section 9 proviso, when the conditions prescribed in the notification are in specific terms as referable to sale of cotton yarn to registered exporters, that the assessee has to produce the proof of export before the final check of accounts and the documents produced by the assessee clearly substantiated the compliance of the conditions under the notification, the Tribunal rightly accepted the case of the assessee – Therefore, Revision stands dismissed – Decided against Revenue.
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