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TMI Blog2010 (11) TMI 828X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent No. 2, viz., the Tamil Nadu Film Development Corporation (for short, "the corporation"), a public sector undertaking, was designated as the nodal agency, responsible for administering and implementing the said project. Pursuant thereto, a tender was floated by the corporation for supply of various equipments for the said film city project. After a successful bid, the appellant was awarded the contract. In furtherance thereof, on June 28, 1994, the corporation issued various purchase orders to the appellant, accompanied by certificates of sale which, inter alia, stated: "This is to certify that the sales tax for the equipment purchased for the film city project at Madras has been exempted by the Tamil Nadu Government." Vide assessment order dated January 31, 1996, the Commercial Tax Officer (for short, "the CTO") exempted the sales made by the appellant to the corporation in the assessment year 1994-95 from the levy of sales tax. However, in relation to the assessment year 1995-96, the CTO, vide his order dated June 26, 1997, rejected the appellant's claim of exemption on similar sales made by it to the Corporation, holding that: "There is no exemption granted in the G.O. c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court has rejected the writ petition of the appellant, inter alia, holding that: "On consideration, we find that admittedly, no notification under section 17 of the Tamil Nadu General Sales Tax Act has been issued. Therefore, in the absence of any such notification issued, the petitioner-firm being an assessee is liable to pay the sales tax and it cannot take advantage of the alleged certificate issued by the second respondent." Hence the present appeal. Mr. Rajiv Mehta, learned counsel appearing on behalf of the appellant, while assailing the impugned judgment, strenuously contended that in view of G.O. M. No. 169 dated June 27, 1994, issued by the Government of Tamil Nadu, the appellant cannot be made liable for payment of tax under the Act in respect of sales to the corporation. The learned counsel contended that if at all sales tax is leviable under the Act, it is the corporation which is liable to pay the same as in the purchase order issued by them to the appellant it was clearly stated that "film city project has been exempted from the payment of sales tax by issuing a separate G.O. (copy will be sent separately). The particulars to that effect is enclosed wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose of extending various concessions, incentives and subsidies as applicable to other industries. The Government also direct that the following concessions, incentives and subsidies shall be made available to film city project: . . . (iii) Deferral of sales tax for a period of five years wherever sales tax levy is applicable. . . . 6.. This order issues with the concurrence of Industries, Commercial Taxes and Religious Endowments, Energy and Finance Departments vide their U.O. Nos. 12959A/MIG2/94-1 dated May 2, 1994, 26/Secy/ Per/94-1 dated May 3, 1994, 4554/A2/94-1 dated May 9, 1994 and 2677/FS/P/94 dated June 2, 1994." (emphasis(1) supplied by us) It is manifest that the said G.O.M. defers payment of sales tax by the proposed "film city project" for a period of five years. It is also plain that the Government of Tamil Nadu had acceded to the request of the "film city" for granting it various concessions, incentives, etc., with the concurrence of different Departments, which included the Department of Commercial Taxes as well. At this juncture itself, it will be useful to refer to section 17A of the Act, which empowers the State Government to notify deferred payment of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cious stones and a casual trader or agent of a non-resident dealer) whose total turnover for a year exceeds three lakhs of rupees but does not exceed ten lakhs of rupees shall not be liable to pay tax on the first three lakhs of rupees of his total turnover, provided that no amount by way of tax or purporting to be by way of tax has been collected by him under this Act in respect of that first three lakhs of rupees." It is abundantly clear that under section 3 of the Act, the liability to pay sales tax in accordance with the provisions of the Act is cast on the dealer, irrespective of the fact whether he has collected it from the consumer or not. Therefore, the plea of the appellant that it had not charged and collected any sales tax from the corporation is of no consequence. However, the issue for consideration in the present case relates to the effect of the deferral scheme envisaged in G.O.M. No. 169 on the liability of the appellant to pay sales tax on the sales made by it to the Corporation for the assessment years 1994-95 and 1995-96. It is evident from the afore-extracted orders that all the authorities below, particularly the Tribunal, have proceeded on the premise that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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