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2015 (5) TMI 496 - MADRAS HIGH COURTDenial of concessional rate of tax - Assessing Officer, while granting the concessional rate of tax to Air Compressors being capital goods, denied the same in respect of the sale effected by the petitioner through its distributors - Held that:- just because of having sold by the manufacturers of machinery and its spares, components and accessories to their buyers being the dealers in such lines for further distribution to the industry, would not alter the legal position and subject these goods for levy at the higher rate of 14.5%. In respect of the identical products as manufactured by the petitioner, namely, Industrial Air Compressors, an application was filed by M/s.Schumak Equipments India Pvt. Ltd., who are manufacturers of Industrial Air Compressors and they sought for clarification as regards the rate of tax for industrial air compressors. Advanced Ruling Authority, by order dated 24.06.2014, clarified that Industrial Air Compressors are liable to tax @ 5% as capital goods within the meaning and scope of Entry 25 of Part-B of First Schedule r/w Section 2(11) of the TNVAT Act, 2006. In the light of the subsequent development, this Court is of the view that the Assessing Officer should take note of the clarification issued by the Advanced Ruling Authority. So far as the rate of tax is concerned, the order of the Advanced Ruling Authority dated 24.06.2014 would be prima facie applicable - Decided in favour of assessee.
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