TMI Blog2019 (4) TMI 1641X X X X Extracts X X X X X X X X Extracts X X X X ..... s of law. Further, the returns filed by the respective Petitioners were rejected and it is proposed by the pre-assessment notices to impose tax and penalty on the assumption that cotton seeds that are used only for seeding purposes are taxable under entry 6(iii) of the II Schedule to the TNGST Act and that such seeds are not exempted under Entry 7 of Part -B of the III Schedule. Thus, it is in the interest of justice that the Assessing Officer is directed to carry out assessment by examining the taxability of cotton seeds that are used exclusively for seeding purposes after providing a reasonable opportunity to the Petitioner to submit objections and make its submissions. Petition allowed. - W.P.Nos.38837 to 38839 of 2006 And W.M.P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18.Organic manures and green manure seeds; 19.Certified and truthfully labelled seeds for seeding purpose; and 20.Vegetable seeds and flower seeds but excluding oil seeds. Subsequently, Part-B of the III Schedule was amended on 27.03.2002. In the amended Part-B of the III Schedule, the erstwhile entries 17,18,19 and 20 were replaced by entry 7 which reads as under: 7.Bacterial culture for agricultural purpose, Organic manures and all kinds of seeds including greed manure seeds, excluding oil seeds those described in II Schedule. After the amendment, the Second Respondent issued pre-assessment notices under the Central Sales Tax Act, 1956 (the CST Act) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeds are oil seeds and, therefore, taxable under the II Schedule. Clarification No.147/2005 and the pre-assessment notices under the CST Act are impugned in the three Writ Petitions. An interim stay of the impugned proceedings is in force from 12.10.2006. 3.At the hearing, the learned counsel appearing for the Petitioner referred to and relied upon the Order of this Court in Tvl.CHENNAI PESTICIDES Vs. THE SPECIAL COMMISSIONER AND COMMISSIONER OF COMMERCIAL TAXES, CHENNAI in W.P.No.13986 of 2007, which is a case relating to the sale of certified cotton seeds for sowing purpose. In the said case also, the contention of the Petitioner was that the said seeds are not edible and that, therefore, the seeds should b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve Order, the learned counsel for the Petitioner submitted that Clarification No.147/2005 is liable to be quashed and that the Assessing Authority should be directed to make a fresh assessment after providing reasonable opportunity to the Petitioner. 5.In response, the learned counsel appearing for the Respondents submitted that when the III Schedule to the TNGST Act was amended, entries 17,18,19, and 20 were omitted. Instead entry 7 was introduced and entry 7 does not include the language of entry 19 of the pre-amended III Schedule. Accordingly, the submission of the learned counsel was that certified and truthfully labelled seeds for seeding purposes were expressly exempted under the pre-amended III Schedule, whereas the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Act 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 returns filed by the respective Petitioners were rejected and it is proposed by the pre-assessment notices to impose tax and penalty on the assumption that cotton seeds that are used only for seeding purposes are taxable under entry 6(iii) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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