Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2019 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 363 - HC - VAT and Sales TaxConcessional rate of tax - default on the part of purchasing dealer - various goods including Low Sulphur Heavy Stock, but barring Motor Spirit, High Speed Diesel Oil and Light Diesel Oil - denial of concessional rate on the ground that no Register of Declarations maintained in the prescribed manner, has been filed in support of the petitioners’ claim - TNGST Act - principles of natural justice. HELD THAT:- Section 3(3) of the TNGST Act stipulates only two conditions. The first, in regard to the nature of the goods, meaning thereby, that the benefit is available in respect of sale of ‘any goods including consumables, packing material and labels’ but excluding capital goods such as plant and machinery, and secondly the use of the goods in manufacture, assembling, packing or labelling of any goods other than alcohol and spirits. Admittedly these two conditions are satisfied in the present case and there is no dispute raised by the Revenue in this regard. The proviso restricts such benefit to the sale of specified commodities, that is, High Speed Diesel Oil, Light Diesel Oil and Molasses, in respect of which, admittedly exemption has not been sought for by the petitioner. Thus there is no dispute on the factual position that all conditions as laid down by section 3(4) and the proviso thereunder have been complied with in this case. This issue has been considered and decided in a slew of decisions rendered by various Benches of this Court culminating in a decision of the First Bench of this Court in the case of M/S. SREE MURUGAN ENGINEERING PRODUCTS VERSUS THE COMMERCIAL TAX OFFICER [2006 (10) TMI 384 - MADRAS HIGH COURT], wherein this Court has categorically held that the manner in which a purchasing dealer deals with the goods is not the concern of the seller and if they are violations/misuse of the Form that come to the notice of the Department, liability in such case can be fastened only upon the purchasing dealer and not the seller. The petitioner is entitled to the benefit of concessional rate of tax in terms of Section 3(3) of the Act - Petition allowed.
|