TMI Blog1995 (3) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... hat in view of section 3(3) of the Tamil Nadu general Sales Tax Act, the petitioner is liable to pay the sales tax at the concessional rate of 3 per cent during the material time as the petitioner was using the goods purchased from the first respondent in the course of manufacture and the final product, viz., soap falls under Schedule I, entry 37 and talcum powder under Schedule I, entry 51 and once the form XVII prescribed under rule 22 of the Tamil Nadu General Sales tax Rules, is filed the petitioner is liable to pay only 3 per cent tax and the first respondent is not entitled to collect 8 per cent and therefore, the petitioner is entitled for refund of the excess amount of sales tax paid y the petitioner to the first respondent. As the respondent has collected 8 per cent and has not accepted the contention of the petitioner, the petitioner has approached this Court for a writ of mandamus or any other appropriate writ, direction or order to the 1st respondent abovementioned directing him to refund to the petitioner the sales tax and surcharge of Rs. 61,991 and Rs. 1,13,194 collected in excess of the sums due under section 3(3) of the Tamil Nadu General Sales Tax Act, 1959, from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ming provision and does not come under the definition of section 2(m), registered dealer, as the Government departments are exempt from registering themselves as a dealer and in this connection the learned counsel referred to section 22 of the Tamil Nadu General Sales Tax Act wherein the Explanation states that the State Government or the Central Government shall be deemed to be the registered dealer, and submitted that the contention of the first respondent that he is not a registered dealer, that therefore he is not bound to accept form XVII and allow the petitioner to pay concessional rate is untenable. He, further submitted that the petitioner complies with the provision of section 3(3) of the Tamil Nadu General Sales Tax Act as he has purchased the goods from the first respondent and he has utilised the same for the manufacture of the final products, viz., soap and talcum powder and both soap and talcum powder are found in Schedule I, entry 37 and entry 51 respectively. The learned counsel further submitted that the first respondent being a department of the State Government was bound by the provisions of the Tamil Nadu General Sales Tax Act and he was bound to accept the form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "3(3) Notwithstanding anything contained in sub-section (1) or subsection (2), the tax payable by a dealer in respect of sale of any goods, other than consumables, to another for use by the latter, in the manufacture inside the State for sale by him of any goods mentioned in the First Schedule, other than those falling under items 70(c) and 107 of the said Schedule, shall be at the rate of only three per cent on the turnover relating to such sale." A reading of the above provision shows that the tax paid by the dealer in respect of sale of any goods other than consumables to another for use by the latter, in the manufacture inside the State for sale by him of any goods mentioned in the First Schedule other than those falling under items 70(c) and 107 shall be at the rate of only three per cent on turnover relating to such sale. Consumable goods have been defined in Explanation, which reads as follows: "Explanation.-For the purposes of this sub-section, 'consumables' means fuels, welding electrodes, rods, abrasives, carbide tip tools and lubricating oils." In the instant case, it is clear that the petitioner is a dealer registered under the Tamil Nadu General Sales Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e than in pursuance of a contract of property in any goods for cash, deferred payment or other valuable consideration; (vi) a person engaged in the business of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract; (vii) a person engaged in the business of delivery of goods on hire purchase or any system of payment by instalments; (viii) a person engaged in the business of transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; (ix) a person engaged in the business of supplying by way of, or as part of any service or in any other manner whatsoever of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service is for cash, deferred payment or other valuable consideration;" As per Explanation (2) to section 2(g), the Central Government or any State Government which, whether or not in the course of business, buy, sell, supply or distribute goods, directly or otherwise, for cash, or for deferred payment, or for commission, remuneration or other ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
