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2019 (6) TMI 494 - HC - VAT and Sales TaxRefund of tax already paid - TNGST Act - whether the sale of the aircraft in Tamil Nadu on 08.03.2004 should be considered as the first sale for purposes of the TNGST Act? - whether the said sale in Tamil Nadu is to be considered as the sale of an imported item notwithstanding the fact that the said aircraft was imported into India in July 1992 and, thereafter, changed hands on a couple of occasions by way of domestic sales before being brought into the State of Tamil Nadu on payment of CST? First sale or not - HELD THAT:- The goods in question may lose their character as imported goods for the purposes of the Customs Act, 1962, immediately upon being cleared for home consumption, but do not do so for purposes of the TNGST Act. In effect, if an aircraft was imported into India through Tamil Nadu, and the first sale in Tamil Nadu happens thereafter, sales tax may be imposed at the rate applicable to imported items notwithstanding the clearance for home consumption upon payment of customs duty. Whether Entry 9 of Schedule XI deals with goods of foreign origin irrespective of the manner in which the said goods entered Tamil Nadu? - HELD THAT:- The words of the relevant provision of the tax statute should be construed literally so as to discern the correct meaning and scope thereof. In the instant case, as is evident from the language of Entry 9 of the XI Schedule, the expression used is imported items falling in Parts-D and E of the I Schedule. Therefore, the meaning of the word imported items should be examined. The word imported is not defined in the TNGST Act. However, it is evident from provisions such as Section 9 that the TNGST Act envisages import of goods from other parts of India into Tamil Nadu and also import of goods from outside India into India. In the case of aircraft, it is the admitted position that it would be taxable at 12% if it is treated as a non-imported item, whereas it would be taxable at 20%, if it is treated as an imported item. The meaning of words in a statute, in general, and, in particular, in a tax statute, should be gathered from the language used therein and the expression “goods of foreign origin” or “aircraft of foreign origin” cannot be substituted for or read into the words “imported items”. If the intention of the State Legislature was to tax goods of foreign origin at higher rates notwithstanding the fact that the goods entered Tamil Nadu by way of inter-state sale upon payment of CST, the expression that should have been used is goods of foreign origin. The Impugned Re-assessment Order dated 28.11.2006 is liable to be quashed in so far as it imposes the rate of 20% on the sale of the aircraft by the Petitioner on 08.03.2004 - in view of the finding that it is a first sale for the purposes of the TNGST Act, the tax that was levied and collected earlier at the rate of 12% is valid and not liable to be refunded. Petition allowed.
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