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2019 (5) TMI 123 - HC - VAT and Sales TaxValidity of assessment order - imposition of tax on cotton seeds - TNGST Act - HELD THAT:- The Commissioner of Commercial Taxes, the First Respondent herein, has stated, in the letter dated 30.08.2005 that the request for amendment of entry 7 cannot be complied with and, in the Clarification dated 26.09.2005, that hybrid cotton seeds are taxable at the rate of 4% under entry 6(iii) of the II Schedule to the TNGST Act. The said Communication and Clarification do not contain any reasons. It also appears that proper opportunity was not provided to the Petitioner to state its case or its objections before the said Communication and Clarification were issued. Although Section 28 A of the TNGST empowers the Commissioner of Commercial Taxes to issue a clarification on the rate of tax in response to a request from a registered dealer, the said communication and Clarification also do not cite any applicable provisions of law. Further, the Assessment Order dated 15.06.2006 was issued without waiting for the objections of the Petitioner and, therefore, the assessment order does not consider the submission that cotton seeds that are used only for seeding purposes are exempted under Entry 7 of Part -B of the III Schedule. Consequently, it is in the interest of justice that the Assessment Order dated 15.06.2006 under the TNGST Act be set aside. The Assessing Officer is directed to carry out fresh assessment after providing a reasonable opportunity to the Petitioner to submit objections and make its submissions. The said Assessing Officer shall make the assessment on an independent basis by disregarding Clarification No.147 dated 26.09.2005 or any other clarification and the communications dated 30.08.2005 and 13.10.2005 - petition allowed by way of remand.
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