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2019 (4) TMI 1641 - MADRAS HIGH COURTClassification of goods - seeds becoming inedible and are capable of being used only for sowing purposes by farmers - whether classified under entry 17, 18, 19 and 20 of Part-B of the Third Schedule of the Tamil Nadu General Sales Tax Act, 1959 or otherwise? - HELD THAT:- Although Section 28 A of the TNGST Act empowers the Commissioner of Commercial Taxes to issue a clarification on the rate of tax in response to a request from a registered dealer, the said communication and Clarification also do not cite any applicable provisions of law. Further, the returns filed by the respective Petitioners were rejected and it is proposed by the pre-assessment notices to impose tax and penalty on the assumption that cotton seeds that are used only for seeding purposes are taxable under entry 6(iii) of the II Schedule to the TNGST Act and that such seeds are not exempted under Entry 7 of Part -B of the III Schedule. Thus, it is in the interest of justice that the Assessing Officer is directed to carry out assessment by examining the taxability of cotton seeds that are used exclusively for seeding purposes after providing a reasonable opportunity to the Petitioner to submit objections and make its submissions. Petition allowed.
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