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2019 (3) TMI 1480 - HC - VAT and Sales TaxBenefit of free sales tax deferral scheme - deferral towards the sale of scrap - whether the deferral would be limited only to the particular product, i.e., sheets or would it also include to scrap? - Held that:- This issue was settled by a judgment of this Court, in COMMERCIAL TAX OFFICER, THIRUPPARANGUNDRAM ASSESSMENT CIRCLE & OTHERS Vs. THIAGARAJAR MILLS LTD [2001 (12) TMI 859 - MADRAS HIGH COURT], stating that the object of G.O.P.No.92, dated 22/2/1991, is to promote industrialization, within in the State of Tamil Nadu and that it would be only in consonance with the spirit of the Government Order that the benefit of deferral of sales tax is extended on the sale of waste and scrap. This Court, therefore, held that expression “product” found in the G.O., must be given a wider meaning to include waste and scrap, to sub-serve the object of the scheme of the incentive. This issue has been answered, in favor of the industry, which has set up its unit, in accordance with the Government orders. The appellant is having its manufacturing unit in its very same place. The appellant is manufacturing steel sheets. Scrap is a by-product. The Hon'ble Supreme Court and this Court have repeatedly held that the turnover by sale of by-product would also be entitled to the benefit of deferral scheme. Benefit is being given to the industry which has been set up in a remote place in accordance with the government order - The technical objection raised by the appellant therefore, cannot be sustained. In the facts of this very case, the issue stands governed by the order, dated 13/9/2006, made in W.P.No.6754 of 2005, whereby the order, dated 11/5/2004, rejecting the application has been set aside by this Court. The authorities were therefore, duty bound to grant the deferral. In fact, the authorities have actually committed contempt of the order of this Court - appeal allowed.
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