TMI Blog2003 (12) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... Babu, J.) It is undisputed that the assessee is entitled to deferral of sales tax liability in respect of the units set up by it at Alathiyur, Perambalur District. An agreement dated 3.9.98 has been entered into between the petitioner company and the State in this regard. 2. It is not in dispute that the petitioner achieved the base level production referred to in that agreement in August 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The agreement in Clause (1) (b) provides thus:- "The company has to go on paying the tax to the level of base volume of production/sales and once it reaches this level, then any further tax liability will be eligible for deferral of sales tax." 6. The additional sales tax is payable at rates which vary having regard to the turn over of the assessee. If the turn over is less than Rs.300 cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned. The agreement does not state that the petitioner has to wait till the year end so as to claim the right to have it's further tax liability deferred, even though it had reached the base volume much before the end of the year. 8. The liability which the petitioner incurred by way of having to pay the additional sales tax at a higher rate by reason of it's sales volume crossing Rs.300 crores a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the additional capacity having been installed, it is very likely that the total sales for the year would have been very much less than Rs.300 crores. The additional liability which is incurred by way of having to pay additional sales tax at a higher rate was a consequence of the additional sales effected by it from the new capacity which it had created. 11. The object of the deferral scheme is t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
