TMI Blog2012 (11) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... export invoice, etc., (i.e) the documents in support of the export, the Department cannot contend that section 18 of the TNVAT Act, 2006, will not apply. The term 100 per cent EOU is self-explanatory and it has not been properly appreciated by the authority. All that section 18 of the TNVAT Act, 2006, provides for is that sale should be in the course of export. If the EOU has made the export and proof of export has already been brought on record, section 18 of the TNVAT Act, 2006, has to automatically apply. – refund claim allowed - W. P. (MD) Nos. 5358 and 5359 of 2011 and M. P(MD) Nos. 1 and 1 of 2011 - - - Dated:- 12-9-2011 - R. Sudhakar, J N. Inbarajan for the Petitioner TR. Janarthanam Additional Government Pleade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 20,07-08 and the reason for seeking refund of tax paid on purchase of goods was that the goods were sold to 100, per cent export oriented unit in a sale in the course of export arid therefore, the sale would fall under section 5(3) of the Central Sales Tax Act, 1956 (hereinafter referred to as, the CST Act; 1956 ) and the petitioner is entitled to the benefit of input-tax credit of refund on the amount of tax paid on the purchase of goods specified in the First Schedule including the capital goods under the category of zero rate sale as defined in section 18 of the TNVAT Act, 2006. Section 18 of the TNVAT 'Act, 2006, provides for the above stated benefits and it reads as follows:- 18. Zero-rating.-(1) The following shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 13, 2011 in respect of both the assessment period stating as follows:- TIN/33184103917/2006-07:- (2) In this connection it is informed that you had effected sales of rough granite to TvL TAB INDIA GRANITE PVT. LTD., HOSUR a 100 per cent E.O.U holders. The, sales made to 100 per cent E.O.U holders could not be termed as zero rated sales as they would not fall under the category of zero rate sales as per section 18(1) of the TNVAT Act, 2006, Hence the entire refund of ₹ 29,83,263 claimed and ,made is not in order. TIN/331and4103917/2007-08:-. (2) In this connection it is- informed that you had effected sales of rough granite to ,TvL TAB.-INDIA GRANITE PVT. LTD., HOSUR a 100 per cent E.O.U holde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeding further in the above matter. The objections raised by the petitioners were referred to in the impugned proceedings. Though personal hearing was granted, the petitioner relied upon their legal submission already made and based on the objection filed, the final order has been passed. The legal plea taken by the petitioner as above has been rejected stating as follows:- As already stated, the dealers in this case had effected sales of rough granite to Hosur dealers, a 100 per cent EOU holders. The sale made to 100 per cent EOU holders could not be termed as 'zero rated sales' as they would not fall under the category of zero rated sales, as per section 18(1) of the TNVAT Act, 2006. Hence, the wrong ITC claimed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase took place after, and was for the purpose of complying with, the agreement or order for or in relation to such export. The fact that sale of goods in this case was in the course of export of goods out of the territory of India is amplified by the documents submitted by the petitioner in support of the refund application by referring to the export invoice, bill of lading, etc. Section 5(3) of CST Act; 1956, starts with a non-obstinate clause and overrides section 5(1) of the Act. Therefore, the sale preceding the export sale will be a sale in the course of export. Therefore, the sale to the 100 per cent EOU is the last sale preceding the sale occasioning the export of the goods out of the territory of India and consequently, it wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f lading, export invoice, etc., (i.e) the documents in support of the export, the Department cannot contend that section 18 of the TNVAT Act, 2006, will not apply. The term 100 per cent EOU is self-explanatory and it has not been properly appreciated by the authority. All that section 18 of the TNVAT Act, 2006, provides for is that sale should be in the course of export. If the EOU has made the export and proof of export has already been brought on record, section 18 of the TNVAT Act, 2006, has to automatically apply. The impugned order does not even state as to how a sale to an 100 per cent EOU which is meant for export promotion, does not fall under section 18(1) of the TNVAT Act, 2006. This is a total misconception and misreading of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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