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TMI Blog2009 (8) TMI 1073X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the petitioner against Form-XVII for the manufacture of Benzoin which is not falling under the First Schedule and is liable to tax under Section 3(1) of the Act?" 2. The brief facts are that the petitioner is a dealer in chemicals viz., Sulphate of Alumina. The petitioner sold Sulphate of Alumina to the purchasers for the alleged manufacture of Benzion (Sambirani) against Form-XVII. The petitioner was originally assessed to tax on a total taxable turnover of Rs.10,95,130/- by the proceedings of the respondent dated 26.11.1993. The respondent subsequently revised the turnover and levied the tax at a higher rate viz., at 8% on the sales turnover of Rs.1,03,600/- and also levied a penalty of Rs.8,936/- under Section 23 of the TNGST Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were not really usable for the manufacture of Benzion, at best the respondent can proceed against the petitioner and the revision ought not to have been made. 6. On the other hand, Mr.Haja Nazaruddin, learned Special Government Pleader in his submissions contended that though the position in law viz., that for any violation of the condition of Form-XVII, the tax and penalty can be imposed only against the purchasing dealer and not against the seller. When once it is found that the so called Form-XVII produced by the petitioner was not a valid Form-XVII in the sense that it does not satisfy the statutorily prescribed format for a duly filed in Form-XVII, the said settled principle will have no application. 7. Having heard the respective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled to the concessional rate...." Similarly, in another unreported decision rendered in W.P.No.10610 of 2000, decided on 04.12.2001, it has been quoted in paragraph 8 as under: "8. This issue was again considered in State of Tamil Nadu Vs. Seema Udyog (Writ Petition No.10610 of 2000, decided on December 4, 2001Madras High Court) in the context of the amended provisions of Section 3(3) of the Act by the Bench, following the decision of a three-Judge Bench of the Supreme Court in State of Madras Vs. Radio and Electricals Ltd. (1966) 18 STC 222, held that the duty of the Seller who received such a declaration, therefore, is confined to make sure that the declaration has been duly filed in and signed by the purchaser/dealer and that the form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst Schedule other than those falling under Section 70(c) and 107 of the first schedule could be taxed at 3%. The said situation was prevailing upto the end of 11.03.1993. 10. A conspectus consideration of the above provision which was existing and the decisions referred to above makes it abundantly clear that in order to avail the concessional rate of tax prescribed under Section 3(3) of the Act, the assessee is bound to produce Form-XVII duly filled-in in the prescribed format. Such Form-XVII should satisfy the requirements viz., that the goods sold should be for the use by the purchaser as component part of any other good mentioned in the First Schedule which the purchaser intends to manufacture inside the State for sale. 11. When we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applying the ratio decidendi of the decisions relied upon by the learned counsel for the petitioner. The ratio of the decision reported in (1993) 89 STC 438 (State of Tamil Nadu Vs. Madras Petro Chem Ltd.) as well as in (2006) 148 STC 419 (Sree Murugan Engineering Products Vs. Commercial Tax Officer, Coimbatore) can be validly applied, if at all, the petitioner had produced a valid Form-XVII and in which event if the purchaser had committed any misfeasance in either using or not using the materials purchased from the assessee, it would be of no consequence in so far as the petitioner assessee is concerned. 13. In as much as Form-XVII relied upon by the petitioner having not satisfied the statutory prescription of fulfilling all the require ..... X X X X Extracts X X X X X X X X Extracts X X X X
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