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2015 (11) TMI 1145 - HC - VAT and Sales TaxLevy of higher rate of tax on purchase turnover - Section 3 (5) of the Tamil Nadu General Sales Tax Act - benefit of concession rate of duty - Held that:- To appreciate the case of the appellant, it is essential to look into Section 3 (5) of the Act on which heavy reliance is placed by the learned counsel for the appellant. A reading of Section 3 (5) of the Act makes it clear that the tax payable by a dealer in respect of sale of goods mentioned in the Eighth Schedule to any other dealer for installation and use in his factory site situate in the State for the manufacture of any goods shall be @ 3% on the turnover relating to such sales. - As seen from the documents available on record, when the original authority and the appellate authority accepts that those air driers are installed in the factory site situate in the State for the manufacture of any goods, it only means that the goods in question should be installed in the factory site in the course of manufacture of any goods. There is no intentment of actual use of the goods in the manufacture. The words “installation of in his factory” or “use in his factory” cannot be misread as to be used as inputs in the manufacture of goods. They are machinery used by the factory at site for manufacture of goods. - requirement as envisaged under Section 3 (5) of the Act is fully satisfied in this case. The goods are installed and used in the factory site. Therefore, the assessee's contention that he is entitled to concession rate of tax at 3% is justified and is liable to be allowed. The Tribunal has erred in rejecting the contention of the assessee that it is entitled to the concessional rate of tax. - Decided against Revenue.
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